Do not invest; SECP warns about companies involve in fraudulent activities.

The SECP has made public a list of 50 companies, involved in similar un-authorized business activities including illegally collecting deposits from investors

Islamabad (Humzah Rehman): The Securities and Exchange Commission of Pakistan (SECP) has
clarified that mere registration of a company with SECP does not authorize 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 a valid license and regulatory approvals.
The general public is advised in their own interest to be careful, not to deal and invest in illegal schemes offered by such companies.
In this regard, the SECP while exercising its regulatory power to curb the menace of illegal business
practices in the country has taken stern actions against “Lasani Oil Traders (Private) Limited” and
“New Lassani Chicks & Chicken (Private) Limited”. 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. SECP has observed that both the companies are using their registration with SECP and FBR to win
public confidence and are publicizing unauthorized investment schemes through Facebook groups
and posts on social media. In an attempt to block companies’ access to the general public, SECP
approached PTA to block Facebook/Twitter pages, cell phone numbers registered in the name of
companies and their directors. The SECP has also made reference to the case to the relevant law
enforcement agency.

The SECP has made public a list of 50 companies, involved in similar un-authorized business
activities including illegally collecting deposits from investors by making false promises of
exceptionally tantalizing returns. The list of such companies is posted on the website: https://www.secp.gov.pk/document/list-of-companiesindulged-in-unauthorized-activities/?wpdmdl=41058&refresh=5ff2b4f5a82801609741557