ISLAMABAD: For safeguarding the hard earnings and interests of general public, the Securities and Exchange Commission of Pakistan (SECP) on Wednesday warned public to refrain from investing in any fraudulent investment schemes that promise hefty profits and unrealistic incentives.

The SECP further clarified that merely the registration of a company didn’t authorise it to solicit deposits from general public or offer investment schemes.

The regulator said a few companies registered with the SECP such as Lasani Oil Traders (Pvt) Ltd and New Lassani Chicks & Chicken (Pvt) Ltd are engaged in unauthorised and dubious business activities.

These companies have been attracting general public to invest in diesel and chickens by offering hefty unrealistic profits and returns.

It is informed that these companies do not hold any licence to seek deposits from the public and all such activities are prohibited and restricted in terms of section 84 read with section 301 of the Companies Act 2017. The SECP is in the process of initiating legal action against these two companies.

The SECP has also received a number of complaints and queries regarding an entity namely B4U. This entity is raising unauthorised deposits from the general public in the name of different investment plans. It is clarified that “B4U Trades” is not registered with the SECP, however, working through its different companies registered with SECP and legal proceedings against these companies and its directors has already been initiated.

A list of few such entities/companies indulged in unauthorised activities is available at SECP’s website too for public awareness.

Published in Dawn, December 31st, 2020