ISLAMABAD, Sept 23: The Securities and Exchange Commission of Pakistan (SECP) has issued show cause notices against 15 companies for carrying on unauthorized brokerage business and involvement in fraudulent activities in violation of Section 5-A and Section 17 of the Securities and Exchange Ordinance, according to official source.

The SECP, at the same time, warned the general public again against investing in such illegal and unauthorized forex business and/dealing with such companies.

The companies, which have been further prohibited from indulging in such unauthorized business, include: (1) M/s. Pindex Pakistan (Pvt) Limited; (2) M/s Offshore Global Management (Pvt) Limited; (3) M/s Fidelity Futures Management (Pvt) Limited; (4) M/s Rouf International Advisory Services (Pvt) Limited; (5) M/s United Brokerage Consultants (Pvt) Limited; (6) M/s Trade Station Securities (Pvt) Limited; (7) M/s World Business Consultants (Pvt) Limited; (8) M/s Exchangers Impex (Pvt) Limited; (9) M/s Tycoon International (Pvt) Limited; (10) M/s Still Rich Financial Services; (11) M/s Leader Forex (Pvt) Limited; (12) M/s Electus International Advisory Services; (13) M/s Nexus Capital Management; (14) M/s Forex Services International; and (15) M/s Uniworth (Pvt) Limited.

By yet another, the SECP, in its continuing operations to eliminate unauthorized activities of so-called forex companies, has prohibited M/s Harvest Topworth International under Section 20 of the Securities and Exchange Ordinance, 1969, from undertaking any dealings in any security with immediate effect.

The said company was further directed to show cause as to why criminal proceedings should not be initiated against its partners.

Furthermore, the SECP has appointed an audit firm, namely M/s Fazal Mehmood and Company for the system audit of M/s Harvest Smartrend Securities (Pvt) Limited, an associated company of Harvest Group which is a member of Lahore Stock Exchange.

The auditors have been asked to submit their report within 30 days with respect to dealings of M/s Harvest Smartrend Securities (Pvt) Limited in forex business and the scope and extent of their unauthorized activities.

The terms of reference of the said audit also include examination and review of inter-group transactions/activities of M/s Harvest Securities (Pvt) Limited vis-a-vis its dealings in foreign securities.

The Harvest Group, according to SECP press release, consists of M/s Harvest Smartrend Securities (Pvt) Limited, M/s. Harvest Topworth International, M/s P.T. Polindo Bauna, Topworth Equity (Pvt) Limited and M/s Harvest International (Pvt) Limited.