List of companies taking illegal deposits released

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Saturday released a list of more than 100 registered and unregistered companies involved in illegal deposit taking and offering investment opportunities to unsuspecting citizens.

The regulator warned that non-registered business entities were falsely claiming registration with the SECP and the Federal Board of Revenue. The list is available on the SECP website.

“They start unauthorised business activities of leasing/financing facility, MLM, pyramid/Ponzi schemes, seeking deposits from the general public in the name of jobs, investment and trading etc,” the SECP said in the advisory to the general public.

“The general public is being warned that these schemes/activities/businesses are prohibited and restricted under the law. It may be noted that mere registration of a company with the SECP does not authorise it to seek deposits from the general public,” the regulator added.

“There are only four kinds of deposit taking and investments schemes allowed in the country related to the financial sector. These include equity which includes the stock market, debt market including Treasury bills, sukuks, national savings etc, currency markets and insurance products,” said a senior official of the SECP.

The regulation of these sectors is divided between the SECP and the State Bank of Pakistan (SBP).

Interestingly, lack of coordination among various regulators has led to the continuous growth of such illegal investment companies across the country.

The corporate sector regulator has been regularly issuing caution that investors have to be vigilant with their investments and not to be misled by such lucrative schemes offered by any company.

The SECP has initiated legal proceedings against various companies involved in unlawful business activities under relevant provisions of the Companies Act 2017.