SECP cautions citizens against investing in 'illegal schemes'

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Wednesday cautioned citizens against investing in “illegal investment schemes”.

The SECP in a statement said that a company namely “Econex Sales & Marketing (Private) Limited” is offering various packages to attract public to its unlawful business activities of multi-level marketing (MLM) and referral marketing.

“Raising un-authorized deposits from the general public, including in referral marketing, MLM, Pyramid & Ponzi Schemes are unlawful activities in terms of explanation of section 301 of the Companies Act, 2017,” the statement posted on the SECP’s official Twitter handle read.

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“The general public is hereby cautioned and advised not to invest in any such illegal investment schemes offered by aforementioned company. The SECP, in accordance with the provision of Companies Act, has initiated necessary legal action against the M/s Econex Sales & Marketing (Private) Limited.”

The commission advised citizens to invest instead in banks, national saving schemes, stock market, insurance or NBFC Companies having valid license from the SECP.