The Securities and Exchange Commission of Pakistan (SECP) has warned the overall public towards making an investment in any fraudulent investment schemes that promise hefty profits and unrealistic incentives.
The SECP has been constantly clarifying that mere registration of a company does not authorize it to solicit deposits from the overall public or provide funding schemes.
It has been observed recently that an organization, namely “Econex Sales and Marketing (Private) Limited,” is supplying various packages to draw the general public to its illegal business activities of multi-stage marketing (MLM) and referral marketing. The stated organization is the usage of its registration fame with SECP to win public confidence, deceptively implying that such sports are being undertaken thru SECP’s regulated platform.
As clearly provided in the rationalization of phase 301 of the Companies Act, 2017, elevating unauthorized deposits from the overall public, indulging in referral marketing, MLM, Pyramid, and Ponzi Schemes are illegal sports in phrases of rationalization of phase 301 of the Companies Act, 2017. The SECP, according to the provisions of the Companies Act, has initiated important legal action against M/s Econex Sales and Marketing (Private) Limited.
In view of the foregoing, the overall public is hereby expressly suggested of their very own hobby to be cautious now no longer to make investments their hard-earned cash or bask in illegal schemes launched by this organization, actively being propagated thru social media debts and pages. The same warning can be exercised withinside the case of every other organization worried about illegal deposit-taking, unauthorized funding, or MLM schemes.