SECP issues warning over fraudulent schemes

Published March 20, 2021
SECP says inviting money from general public to offer any return is a restricted business activity. — Reuters/File
SECP says inviting money from general public to offer any return is a restricted business activity. — Reuters/File

ISLAMABAD: To protect the general public from unlawful and illegal activities being carried out by various companies, the Securities and Exchange Commission of Pakistan (SECP) on Friday issued a public warning advising general public to refrain from investing in any fraudulent investment schemes.

The corporate sector regulator said a company called ‘La Ville De Paris Housing Scheme Ltd’ was inviting the public to purchase certificates, namely Le Paris Registration Certificate, to become entitled for investment in residential and commercial property schemes to be launched by the company in future. The company is offering a minimum guaranteed return per certificate and eligibility for lucrative cash prizes through a lucky draw.

“The general public is hereby informed that investment opportunity, whereby any future return/benefit, determined by chance or lottery or like manner, is assured or promised in return for a deposit or contribution is an unlawful activity and is a ground for winding up of such a company in terms of section 301 of the Companies Act, 2017,” the SECP said.

The commission added that inviting money from general public to offer any return is a restricted business activity and can only be offered by specialised companies duly authorised by the SECP or the State Bank of Pakistan.

The aforementioned company has explicitly declared in its Mem­orandum of Association that it shall not engage in any lottery business or any restricted or unlawful business.

The SECP said that it was reviewing activities being carried out by the above-mentioned company. “It is deemed appropriate to alert the public against possible misuse of the registration status of the company to mislead them,” the statement added.

The SECP said that another company called ‘All Pakistan Projects’ was offering lucrative investment packages through its website. The commission informed the general public that ‘All Pakistan Projects’ was not registered with the SECP.

“It has been noted that few individuals, whose names are appearing on the website of the entity, are directors/members in the following registered companies,” the SECP said, adding that these firms include APP Projects and Real Estate (Pvt) Ltd, AITS Traders (SMC-Private) Ltd, APP Restaurants & Cafe (Pvt) Ltd, APP Riders (Pvt) Ltd, APP Shopping Mall (Pvt) Ltd.

The SECP stressed that even a registered company registered cannot invite or accept deposits from the public.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Who bears the cost?

Who bears the cost?

This small window of low inflation should compel a rethink of how the authorities and employers understand the average household’s

Editorial

Internet restrictions
Updated 23 Dec, 2024

Internet restrictions

Notion that Pakistan enjoys unprecedented freedom of expression difficult to reconcile with the reality of restrictions.
Bangladesh reset
23 Dec, 2024

Bangladesh reset

THE vibes were positive during Prime Minister Shehbaz Sharif’s recent meeting with Bangladesh interim leader Dr...
Leaving home
23 Dec, 2024

Leaving home

FROM asylum seekers to economic migrants, the continuing exodus from Pakistan shows mass disillusionment with the...
Military convictions
Updated 22 Dec, 2024

Military convictions

Pakistan’s democracy, still finding its feet, cannot afford such compromises on core democratic values.
Need for talks
22 Dec, 2024

Need for talks

FOR a long time now, the country has been in the grip of relentless political uncertainty, featuring the...
Vulnerable vaccinators
22 Dec, 2024

Vulnerable vaccinators

THE campaign to eradicate polio from Pakistan cannot succeed unless the safety of vaccinators and security personnel...