SECP Warns Public Against Illegal investment Receipt
The SEC has highlighted that the SECP registration alone does not allow the Commission to seek deposits from the general public, as the Securities and Exchange Commission of Pakistan (SECP) said.

Under Section 84 of the Company Act 2017, deposit-taking by entities other than banks is unlawful. In addition, only specialist organizations possessing a valid license and regulatory authorizations can offer financial services, including automotive finance, leasing, house financing, etc.

The public should be vigilant not to deal and engage in unlawful schemes presented by enterprises involved in unlawful filing, unauthorized investment, and multi-level marketing for their own sake (MLM).

SECP has taken harsh steps against the Shaukat Marwat Group, composed of the following entities discovered to be involved in illicit deposit take-out while implementing its regulatory authorities to stop unlawful deposit in the country:
Shaukat Marwat Group (Private) Limited Companies Group

  • The estates and builders of Shaukat Marwat (Private) Limited
  • Transportation Shaukat Marwat (Private) Limited
  • Import/Export (Private) Limited Shaukat Marwat
  • Restaurants Shaukat Marwat (Private) Limited
  • Hotels Shaukat Marwat (Private)
SECP has noted that these firms use their SECP and FBR registration for public confidence and seek funding through illicit investments via Facebook groups and social media outlets.

SECP has issued instructions to those companies in respect of the application for deposits and refund of any sum collected, if any, by the general public according to section 474 of the Companies Act, 2017; it has launched a penal action according to section 84(2)(b) of the Companies Act, 2017 against such companies on invitations from the public to pay deposits;

In addition, SECP has brought necessary action on the above-mentioned enterprises to be taken by the relevant regulatory body and the relevant law enforcement authorities.

The SECP published a list of firms engaged in similar illicit enterprises, including the unlawful collection of investment deposits by misleading claims of extraordinarily high profits. The list is available on the official SECP website.

Complaints and/or proof of unlawful business and illegal deposit-making organizations can be forwarded to the scams@secp.gov.pk e-mail address.
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