SECP warns investors against Ponzi schemes – Journal
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has warned the general public against investing in Ponzi and pyramid schemes, multilevel marketing (MLM) and other online systems that promise rates high yields.
The SECP said Thursday that a company, “International Business Solutions (Private) Limited”, prima facie collects illegal deposits from the public by offering profits on them. It is specified that the said company does not hold any license to collect deposits from the public, SECP said.
Likewise, an online application called “Barwaqt” is also involved in offering financing facilities to the general public. To support its illegal activity, the mobile app is believed to be licensed by the SECP. It is hereby clarified that the aforementioned entity is neither registered nor authorized by the SECP.
In view of the above, the general public is expressly advised to refrain from trading / investing in these entities. The SECP has taken legal action against these entities.
The SECP has repeatedly made it clear that simply registering a business does not entitle it to collect deposits from the public. It is recalled that the collection of unauthorized deposits from the general public, referral marketing, MLM, Pyramid and Ponzi schemes are illegal activities within the meaning of article 301 of the Companies Act of 2017.
The SECP has made public a list of companies involved in unauthorized business activities such as illegally collecting deposits from investors by making false promises of unusually high returns.
Posted in Dawn, le 29 October 2021