SECP warns public against investing in fraudulent investment schemes

Web DeskWeb Editor

01st Sep, 2021. 02:34 pm

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has warned the general public against investing in any fraudulent investment schemes that promises hefty profits and unrealistic incentives, a statement said on Wednesday.

The commission has been constantly clarifying that mere registration of a company, does not authorise it to solicit the deposits from the general public or offer investment schemes.

It has recently been observed that a company, “Econex Sales and Marketing (Private) Limited” is offering various packages to attract the public to its unlawful business activities of multi-level marketing and referral marketing.

The company is using its registration status with the SECP to win the confidence of the people, deceptively implying that such activities are being undertaken through the commission’s regulated platform.

As clearly provided in the explanation of section 301 of the Companies Act, 2017, raising un-authorised deposits from the general public, indulging in referral marketing, multi-level marketing, and Pyramid and Ponzi schemes are unlawful activities in terms of explanation of section 301 of the Companies Act, 2017.

The SECP, in accordance with the provisions of the Companies Act, has initiated necessary legal action against Econex Sales and Marketing (Private) Limited.

In view of the foregoing, the general public is; hereby, expressly advised in their own interest to be careful, not to invest their hard-earned money or indulge in illegal schemes launched by this company, actively being propagated through social media accounts and pages.

The same caution may be exercised in case of any other company involved in any illegal deposit taking, unauthorised investment or multi-level marketing schemes.

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