SECP Issues Public Warning Against Fraudulent Investment Schemes

The Securities and Exchange Commission of Pakistan (SECP) has issued a public warning against investing in fraudulent investment and Ponzi schemes. The SECP’s primary objective is to safeguard the interests of the public, and it advises people not to invest in schemes that promise hefty profits and unrealistic incentives, which are often used to trap innocent individuals.

Companies Involved in Unauthorized Activities

The SECP has identified several companies, including M/s. BH Online Jobs (SMC-Private) Limited, Corporate Automobiles (Private) Limited, and Best Day Innovative Solutions (Private) Limited, that are engaged in unauthorized and dubious business activities. These companies are offering investment plans such as leasing/financing of cars, motorcycles, houses, etc., and are involved in illegal banking business without lawful authority. These activities are prohibited and contrary to the object clause of their Memorandum of Association.

SECP’s Efforts to Protect the Public

The SECP has received numerous complaints about these companies. In response, it has taken steps to inform the public about these fraudulent schemes and the companies involved. The SECP’s warning is part of its ongoing efforts to protect the public from fraudulent investment schemes and to maintain the integrity of Pakistan’s financial markets.

In addition to issuing public warnings, the SECP is also actively working on other initiatives to safeguard investors. For instance, it organized a “Symposium on Corporate Supervision and Regulatory Actions” on June 24, 2023. This event was aimed at discussing regulatory actions and corporate supervision strategies to prevent fraudulent activities in the financial market.

Public Awareness is Crucial

While the SECP is doing its part to protect investors, it is also crucial for the public to be aware of these fraudulent schemes. Investors should be cautious about investing in schemes that promise high returns without any risk. It is always advisable to do thorough research before investing in any scheme or company.

The SECP’s warning serves as a reminder for all investors to be vigilant and cautious when choosing where to invest their money.

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