SECP warns public against investing in ponzi schemes

929

Staff Reporter

Islamabad

The Securities and Exchange Commission of Pakistan (SECP) to safeguard the interests of public, advises people not to invest in fraudulent investment and ponzi schemes promising hefty profits and unrealistic incentives to trap innocent people.
It has come to the SECP’s knowledge that companies namely M/s BH Online Jobs (SMC-Private) Limited, Corporate Automobiles (Private) Limited and Best Day Innovative Solutions (Private) Limited are engaged in unauthorized and dubious business activities, said a press release issued by the SECP.
The SECP received numerous complaints that these companies are offering investment plans such as leasing/financing of cars, motorcycles, houses etc and involved in illegal banking business without lawful authority.
These activities are prohibited and contrary to the object clause of their Memorandum of Association.
These entities trap people by offering high rates of return with little risk to investors. They market their schemes through local newspapers, social media, websites and pamphlets etc.
The SECP has already initiated legal proceedings for winding up these companies.

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