SECP initiates proceeding against two network marketing firms

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Ijaz Khan

Islamabad

The Securities and Exchange Commission of Pakistan (SECP) has initiated legal proceedings against two private network marketing companies for their alleged involvement in unlawful business activities.

The companies, Gold Transmit Network Technology (Pvt) Limited and Green Apple Super Market (Pvt) Limited, have breached the Companies Act 2017 as they were involved in unauthorized activities, sources at the SECP said. The companies offered Ponzi business and schemes in Pakistan to fleece the public of their hard-earned money. The companies allegedly targeted innocent citizens by offering them hefty profits against their investment, the sources said.

The SECP said 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, were unlawful business activities.

The SECP has warned people against being misled by fraudulent activities such as Ponzi marketing schemes launched by the companies through advertising in electronic and print media, websites, emails, mobile text messages etc.