SECP Adds 37 Companies Involved in Illegal Activities to its List

The Securities and Exchange Commission of Pakistan (SECP) has issued a list of 37 companies involved in unauthorized business activities including leasing/financing/loan facilities and illegal Stock/Shares Trading Platforms. According to the details of the SECP, some registered companies are suspected to be engaged in unauthorized business activities including leasing/financing/loan facilities (which are licensed activities), MLM, pyramid/Ponzi schemes, seeking deposits from the general public in the name of jobs, investment and trading etc. The following entities have come to SECP’s notice which are not registered with the SECP however they are representing themselves as registered companies and some are producing fake/ tempered incorporation certificates to defraud general public.  Updated on December 17, 2024:   The General Public is being warned that these schemes /activities /businesses are prohibited and restricted under the law. Please note that the mere registration of a company with SECP does not authorize it to seek deposits from the general public. The general public is hereby cautioned in their own interest to be vigilant with their investments and dealing with these companies and not to be misled by such lucrative schemes. Illegal Stock/Shares Trading Platform being promoted through social media: Numerous illegal platforms across social media such as Facebook, Instagram, and WhatsApp are promoting fraudulent investment schemes, misleadingly presented as investment advice or training courses. The advertisements entice the general public with false promises of extraordinary profits at minimal risks and insider tips, bonuses, easy loans for investments purposes on payment of membership fees or investing through the advertised platforms. Moreover, names/logos/images of reputable professionals/companies, SECP, and PSX are being used to deceive potential investors.  WTIC World Top Investor Competition, SECP added. Following list includes names of such companies/entities that have come to SECP’s notice:           Apart from above list of companies, SECP frequently receives complaints and queries against the following few companies regarding their unauthorized activities.