Islamabad: The Securities and Exchange Commission of Pakistan (SECP) on Thursday (October 28) has issued warning for the citizens to not invest in Ponzi and easy profit schemes, news sources reported. In its warning, the SECP has warned that some companies are operating in the country with false claims of being registered and authorised by SECP, which is against the facts.
It is the SECP’s second warning to the public in the last year regarding investing in schemes based on pyramid marketing models, referral marketing, Multi-level marketing (MLM), and foreign exchange investment schemes. According to Section 301 of the Companies Act, 2017, running an MLM, Pyramid, and Ponzi Schemes are illegal activities.
The authorities have also urged the general public to avoid investing in such firms since they are not authorised nor have stakes in the country, making it more difficult to prevent and recoup from financial losses. According to the SECP, the government has also taken legal action against such ponzi schemes in the public interest.
Hazafa reveres the art of writing and has been turned into a property enthusiast by profession. Her daily survival kit includes; tea, coffee, keyboard and paperbacks.
