SECP Takes Action Against 2 Companies Involved in Ponzi Schemes

The Securities and Exchange Commission of Pakistan (SECP) has initiated legal proceedings against Gold Transmit Network Technology (Pvt) Limited and Green Apple Super Market (Pvt) Limited in terms of section 301 read with section 304 of the Companies Act, 2017.

The companies have been found involved in unauthorized activities and offering Ponzi business/schemes in Pakistan to deprive the unsuspecting public of their hard-earned money.

The SECP in a statement clarified that raising unauthorized deposits from the public, indulging in referral marketing, multi-level marketing (MLM), pyramid and Ponzi schemes, locally or internationally, directly or indirectly, are unlawful business activities.

In view of the above, the SECP has warned the masses not to be misled by fraudulent activities and marketing schemes launched by the companies through advertising in the electronic and print media, websites, emails, mobile text messages etc.