ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has initiated winding up proceedings against six companies, allegedly involved in illegal and unauthorised business activities.
These companies are M/s Memon Corporation (Private) Limited, M/s Pak Memon Impex (Private) Limited, M/s Neamat Ullaha & Amjad Javed and Company (Private) Limited, M/s Corporate Automobiles (Private) Limited, and M/s Best Day Innovative Solutions (Private) Limited.
These companies were reportedly involved in the businesses of leasing of vehicles, properties, home appliances etc, without obtaining prior license from the SECP. These companies were carrying out investment and financing businesses by inducing unsuspecting customers of attractive returns in lieu of their investment.
Moreover, similar winding up proceedings have also been initiated against Fact Finders (Private) Limited. This company was reportedly involved in carrying out prohibited activities, having security implications, which could only be performed by authorised law enforcement agencies. The SECP has initiated an extensive enforcement action against white goods sellers and entities engaged in unauthorised business of leasing electronic goods in main commercial areas across country.
These companies were incorporated under the Companies Act, 2017, but were carrying on businesses prohibited/restricted by applicable laws, and against their respective objects as specified in their Memorandum of Association.
SECP initiated necessary legal proceedings/actions in all identified matters and authorised in-charge of relevant company registration office to present a petition for wingding-up of all these companies before the high courts.
The general public has been cautioned that merely registering an entity as a private or public limited company with SECP, does not authorise a company, sponsors and directors to conduct business of leasing, Modarba, or take funds from the public on profit sharing basis and to provide returns.
All such activities can only be conducted after getting an appropriate license from SECP. General public was advised in their own interest to conduct due diligence before entering into any transaction of leasing or investing funds with companies. The public should know that the company was duly authorised / licensed by the SECP/SBP to conduct such business. Relevant information should be obtained from SECP website or through the telephone help line.
