November 25, 2019: The Securities and Exchange Commission of Pakistan (SECP), to safeguard interests of the common public has initiated winding up proceedings against 6 companies, allegedly involved in illegal and unauthorized business activities.

These companies are M/s Memon Corporation (Private) Limited, M/s Pak Memon Impex (Private) Limited, M/s Neamat Ullaha & Amjad Javed and Company (Private) Limited, M/s Corporate Automobiles (Private) Limited and M/s Best Day Innovative Solutions (Private) Limited.  These companies are reportedly involved in the businesses of leasing of vehicles, properties, home appliances etc., without obtaining a prior license from the SECP.

Besides these companies were carrying out investment and financing businesses by inducing unsuspecting customers of attractive returns in lieu of their investment.

Moreover, similar winding up proceedings has also been initiated against Fact Finders (Private) Limited.  This company is reportedly involved in carrying out prohibited activities, having security implications, which can only be performed by authorized Law Enforcement Agencies. 

The SECP has initiated an extensive enforcement action against white good sellers and entities engaged in the unauthorized business of leasing electronic goods in main commercial areas across the country.

These companies were incorporated under the Companies Act, 2017, but were carrying on businesses prohibited/restricted by applicable laws, and against their respective objects as specified in their Memorandum of Association. SECP initiated necessary legal proceedings/actions in all identified matters and authorized in-charge of relevant Company Registration Office to present a petition for winding-up of all these companies before the Honorable High Courts.

The general public is cautioned that mere registering an entity as a private or public limited company with SECP, does not authorize a company, sponsors and directors to conduct the business of leasing, Modarba, or take funds from the public on profit sharing basis and to provide returns. All such activities can only be conducted after getting an appropriate license from SECP.

The general public is advised in their own interest to conduct due diligence before entering into any transaction of leasing or investing funds with companies, that the company is duly authorized/licensed by the SECP/SBP to conduct such business. Relevant information may be obtained from the SECP website or through the telephone helpline.

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