Staff Reporter
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has once again warned the general public against investing in ponzi and pyramid schemes, multi-level marketing (MLM) and other online schemes, that promise high rates of return.
The SECP has noticed that a company namely “International Business Solutions (Private) Limited” is prima facie raising illegal deposits from the public by offering profits thereon. It is clarified that the said company does not hold any license to collect deposits from the public.
Similarly, an online application namely “Barwaqt”, is also found involved in offering financing facilities to the general public. To support its illegal activity, the mobile App is purported to be licensed by the SECP. It is hereby clarified that the aforementioned entity is neither registered nor licensed by the SECP.
In view of the foregoing, the public at large is expressly advised to refrain from dealing/investing in these entities. The SECP has initiated legal actions against these entities.
The SECP has time and again clarified that mere registration of a company does not authorize it to raise deposits from the public. It is reiterated that raising un-authorized deposits from the general public, indulging in referral marketing, MLM, Pyramid and Ponzi Schemes are unlawful activities in terms of section 301 of the Companies Act, 2017.