To safeguard the interests of the general public, the Securities and Exchange Commission of Pakistan (SECP) has initiated to wind up proceedings against 6 companies which are allegedly involved in illegal and unauthorized business activities.
These companies are as follows:
- M/s Memon Corporation (Private) Limited
- M/s Pak Memon Impex (Private) Limited
- M/s Neamat Ullaha & Amjad Javed and Company (Private) Limited
- M/s Corporate Automobiles (Private) Limited
- M/s Best Day Innovative Solutions (Private) Limited
- Fact Finders (Private) Limited
According to the statement by the SECP, these companies are reportedly involved in the businesses of leasing vehicles, properties, home appliances etc., without obtaining a prior license from the SECP. Besides, these companies were carrying out investment and financing businesses by offering attractive returns to unsuspecting customers in lieu of their investment.
Moreover, similar proceedings have also been initiated against Fact Finders (Private) Limited. This company is reportedly involved in carrying out prohibited activities, having security implications, which can only be performed by authorized Law Enforcement Agencies.
The SECP has initiated an extensive enforcement action against white good sellers and entities engaged in unauthorized business of leasing electronic goods in main commercial areas across the country. These companies were incorporated under the Companies Act, 2017, but were carrying on businesses prohibited by applicable laws, and against their respective objects as specified in their Memorandum of Association.
The commission has initiated necessary legal proceedings in all identified matters and authorized in-charge of relevant Company Registration Office to present a petition to wind up all these companies before the Honorable High Courts.
The SECP cautioned the general public that mere SECP registration of an entity as a private or public limited company does not authorize a company, sponsors and directors to conduct business in leasing, Modaraba, or take funds from the public on profit sharing basis and to provide returns.
All such activities can only be conducted after getting an appropriate license from the SECP. The commission advised the general public to conduct due diligence before entering into any transaction of leasing or investing funds with companies, that the company is duly authorized/licensed by the SECP/SBP to conduct such business.