SECP flags 37 companies for unauthorized activities

December 24, 2024 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has flagged 37 companies that are engaged in unauthorized activities, including leasing, financing, loan facilitation, and operating illegal stock trading platforms without proper licensing.

Additionally, these companies were found operating multi-level marketing (MLM) schemes, pyramid, and Ponzi schemes, and soliciting public deposits under the guise of job opportunities, investments, or trading.

SECP has warned the general public that registration with the SECP alone does not authorize a company to solicit deposits from the public, as such schemes, activities, and businesses are strictly prohibited by law.

Furthermore, entities that are not registered with the SECP are falsely presenting themselves as legitimate companies.

Some of these entities are even producing counterfeit or altered incorporation certificates in an attempt to defraud the public.

The SECP advises the public to exercise caution when dealing with or investing in such entities and to avoid being lured by promises of high returns or attractive schemes.

Several fraudulent platforms across social media, including Facebook, Instagram, and WhatsApp, are promoting deceptive investment schemes disguised as investment advice or training courses.

These advertisements often promise extraordinary profits with minimal risk, insider tips, bonuses, or easy loans for investment purposes, contingent upon payment of membership fees or investment through these platforms.

Additionally, the SECP has noted that the names, logos, and images of reputable professionals, companies, the SECP itself, and the Pakistan Stock Exchange (PSX) are being misused to mislead potential investors.

This deceptive practice is also associated with the World Top Investor Competition (WTIC).

The following is a list of companies and entities identified by the SECP as being involved in such activities.

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