Stern action initiated against companies using FBR, SECP registrations for illegal investment

Stern action initiated against companies using FBR, SECP registrations for illegal investment

ISLAMABAD: The Securities and Exchange Commission of Asian nation (SECP) has initiated stern action against firms engaged in attracting the overall public for unauthorized investments by exploitation registrations of relevant authorities.

In a statement on Thursday, the SECP aforementioned that mere registration of an organization with SECP doesn't authorize acceptance of deposits from the general public.

Deposit-taking by firms aside from banking firms is unlawful in terms of section eighty-four of the Act. monetary services together with automotive finance, leasing, acceptance of deposits, house finance etc. will solely be offered by specialised firms holding a valid licence and regulative approvals.

The general public is suggested in their own interest to use caution, to not deal and invest in nonlegal schemes offered by such firms.

In this regard, the SECP whereas physical exertion its regulative power to curb the menace of nonlegal business practices within the country has taken stern actions against “Lasani Oil Traders (Private) Limited” and “New Lassani Chicks & Chicken (Private) Limited”.

SECP has promptly initiated legal proceedings for the polishing off of those firms in terms of section 301 browse with section 304 of the businesses Act, 2017 and disqualification of administrators therefrom in terms of section 172 of the Act.

SECP has determined that each the businesses area unit exploitation their registration with SECP and FBR to win public confidence and area unit business enterprise unauthorized investment schemes through Facebook teams and posts on social media.

In a trial to dam companies’ access to the general public, SECP approached PTA to dam Facebook/Twitter pages, cellular phone numbers registered within the name of firms and its administrators. The SECP has additionally created reference of the case to the relevant enforcement agency.

The SECP has created public a listing of fifty firms, concerned in similar un-authorized business activities together with lawlessly grouping deposits from investors by creating false guarantees of exceptionally tantalizing returns.