Beware of Investing in Fake Real Estate Schemes, Warns SECP
The investment schemes are enticing and regarding fractionalization of real estate assets and these companies lure the investors to buy those fractions. Following are a few companies, highlighted by SECP that are found involved in advertising illegal schemes through their online platforms. Xstate Technologies (Private) Limited Company, Beacon Marketing (Private) Limited, International Hospitality Investment Group (Private) Limited, Dao Proptech (Private) Limited, and Neo Cassa (Private) Limited.
It is notable that none of these above-mentioned companies has the approval to conduct this activity under the sandbox regulatory regime of the SECP. Under Section 87(2) of the Securities Act, 2015, no person and no company is eligible to sell securities to the general public without prior approval of the SECP
The Securities and Exchange Commission of Pakistan (SECP) has already initiated legal action against these entities, as the commission can wind up these fraudulent companies for these unlawful activities under section 301 of the Companies Act, 2017.
“While SECP has initiated legal action/adopted legal course against these entities for carrying unauthorized/illegal business activities, it is deemed appropriate to alert the public against possible misuse of registration status of the companies to mislead them,” stated the commission.
Moreover, the commission has already warned the general public not to invest in any of these fraudulent schemes, advertised by these companies, otherwise, you will be responsible for the loss and be careful about other projects as well, advertised by other developers. Pakistan real estate agents always advise you to double-check the investment scheme, community, and project before parking your savings there.
You can consult team HomesPakistan, to know about upcoming residential projects, to invest your hard-earned money.