SECP takes action against two firms over unauthorised investments

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has taken stern action against two companies engaged in luring the general public to unauthorised investments by using registrations of relevant authorities.

In a statement on Thursday, the SECP said it has made public a list of 50 companies involved in similar unauthorised business activities, including illegally collecting deposits from investors by making false promises of exceptionally tantalizing returns.

“While exercising its regulatory power to curb the menace of illegal business practices in the country, the SECP has taken stern actions against Lasani Oil Traders (Private) Limited and New Lassani Chicks & Chicken (Private) Limited,” the statement read. “The SECP has promptly initiated legal proceedings for the winding up of these companies in terms of section 301 read with section 304 of the Companies Act, 2017 and disqualification of directors thereof in terms of section 172 of the Act.”

The commission observed that both the companies were using their registration with SECP and FBR to win public confidence and were publicising unauthorised investment schemes through Facebook groups and posts on social media.

In an attempt to block companies’ access to the general public, the SECP approached PTA to block Facebook/twitter pages, cell phone numbers registered in the name of companies and its directors. It also made reference of the case to the relevant law enforcement agency.

The SECP said that mere registration of a company with SECP does not authorise acceptance of deposits from the general public. Deposit taking by companies other than banking companies is illegal in terms of section 84 of the Act.

“Financial services, including car financing, leasing, acceptance of deposits, house financing etc., can only be offered by specialized companies holding valid licence and regulatory approvals.”

The SECP advised the general public to be careful in their own interest and not to deal and invest in illegal schemes offered by such companies.

13 COMMENTS

  1. What about b4u? Collecting deposit from investors and promise tha company will pay some % of investment in monthly basis….. Its legal or illegal???

  2. Bizztrade people are selling fake crypto coins too and charging Euros. Pakistan will see biggest financial scam soon. Govt must look into it.

    • Its a registered coin, already trading on top crypto exchanges. how is it fake ?

  3. This type of business is done through insurance companies too through using their agency arrangements with different companies needs to be checked immediately.

  4. ALL PAKISTAN PROJECT is also involved in such illegal activities. They have grabbed more than 2 billion rupees and CEO Adam Choudhary of UK can leave Pakistan anytime. It is going to be a very big scam in Pakistan. What about innocent masses.
    M. Farooq Khan
    0332-7941573

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