The Securities and Exchange Commission of Pakistan (SECP) has taken cognizance of an unincorporated entity by the name of Etihad Auto Solutions for offering car financing schemes against an advance or down payment of 25% at extremely low markup rates.
The SECP said in a press statement that the sponsors of Etihad Auto Solutions have also registered another company under the Companies Act, 2017 with a similar name, i.e., Etihad Auto Solutions (Private) Limited in order to deceive the public.
“It is falsely claimed that Etihad Auto Solutions (Private) Limited is a non-banking finance company (NBFC) registered with SECP. SECP hereby warns the public not to deal with M/s Etihad Auto Solutions (Private) Limited and/or Etihad Auto Solutions in any form or arrangement, as these entities are neither licensed by the SECP as NBFCs nor are they allowed to offer car financing services,” read the statement.
The SECP has already initiated action against M/s Etihad Auto Solutions (Private) Limited and Etihad Auto Solutions, which includes closing down their operations and referring the matter to relevant law enforcement agencies.
The general public is once again informed that the “Certificate of Incorporation” of a company merely confirms its registration with SECP and does not allow the company to raise deposits or launch investment schemes, it added.
