On a mission to protect the public from fraudulent investment schemes, the corporate watchdog has called out yet another company allegedly soliciting investments or deposits from the public without due authorisation.
By Muhammad Ali
ISLAMABAD: Continuing its crusade against investment scammers deceiving the public by creating an aura of legitimacy based on “Registration with the SECP”, the Securities and Exchange Commission of Pakistan has called out another company it says is misusing its incorporation: Anees Ahmed Enterprises.
“[The] company is not a registered investment company with the SECP and that it is therefore not authorized to solicit investments from the public”, said an advisory issued by the national corporate watchdog the other day.
The new advisory comes on the heels of another similar advisory issued by the SECP on August 8, 2023, targeting a company named “FX Global Investments (FXGI)”.
On a mission against investment scammers, the SECP has been issuing advisories against investment scammers. In recent years, the SECP has stepped up its efforts to combat investment scams, issuing advisories against more and more companies.
In the new advisory, the SECP warns the public against investing in fraudulent schemes with unrealistic incentives and promises of profits. It clarifies that company registration does not authorize soliciting deposits or offering investment schemes.
Warning the public that the company is not a registered investment company with the SECP and that it is therefore not authorized to solicit investments from the public, the advisory also states that Anees Ahmed Enterprises has been involved in illegal activities, such as promising high returns with little or no risk.
The advisory urges the public to exercise caution before investing in any company that is not registered with the SECP as an investment company. The SECP also encourages investors to verify the credentials of any company before investing any money.
The earlier advisory warns the public that the FX Global Investments or FXGI is not a registered investment company with the SECP and that it is therefore not authorized to solicit investments from the public.
The advisory also states that FXGI has been involved in illegal activities, such as promising high returns with little or no risk.
The SECP’s corporate website at secp.gov.pk maintains a list of companies involved in illegally soliciting investments from the public. However, this list was unavailable as of this writing.
Based on SECP’s advice, here are some tips to help the citizenry avoid investment scams:
First and foremost, only invest in companies that are registered with the SECP as investment companies. Mere ‘registration with SECP”, which is how incorporation is described, does not provide adequate grounds for a company to solicit investments or deposits.
Secondly, do your research before investing in any company and be wary of companies that promise high returns with little or no risk.
Finally, do not invest money that you cannot afford to lose.
If you think you have been the victim of an investment scam, contact the SECP immediately.
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