The Securities Exchange Commission of Pakistan has launched an investigation against five companies for allegedly defrauding the public in the name of investing in property.
Among the companies declared illegal by the Securities Exchange Commission of Pakistan are Xstate Technologies Pvt. Ltd. (Xstate Beta), Beacon Private Company (Beacon Crowd), International Hospitality Investment Group Pvt. Dow Proof Tech Pvt. Ltd. and New Casapriva Ltd. (New Casa).
Inquiries have been launched by the SECP declaring the companies illegal while the public has also been warned to refrain from investing in companies involved in illegal and illegal manufacturing.
Procedures of companies declared illegal
Companies outlawed by the SECP through their online platforms are urging citizens to pay a monthly rent in case of investment in the property of these companies and in case of sale of property. You can get a return on your investment.
These companies have adopted the method of fractions under which a large capital is divided into smaller units or shares and profits are given according to the purchase and sale of these units. For example, if it is not possible for an individual to purchase a flat worth Rs.
What are fractions actually?
According to the Securities Exchange Commission of Pakistan, this method of fractions or securities is used in many other sectors, including the stock market, and fragmentation is an innovative method of investing in the real estate sector. The schemes are regulated by rules and regulations and in this regard, the SECP has allowed real estate fragmentation schemes to only two companies under its regulatory framework.
According to the SCCP, under section 82 (2) of the Securities Act, 2015, no company can sell securities without obtaining a license from the SECP and action is taken to close such companies.
According to the statement, the SECP has initiated an inquiry under the law against the five companies and also appealed to the public that these companies are misusing the registration with the SCCP in a wrong and illegal manner. Avoid investing in schemes.
