SECP Upholds Decision on Shaukat Marwat Group

The Islamabad High Court has upheld the decision of the Appellate Bench of the Securities and Exchange Commission of Pakistan (SECP) regarding the Shaukat Marwat Group of Companies (Private) Limited. The SECP had penalized the companies for engaging in illegal deposit-taking activities and promoting these activities through a social media campaign. This action was taken after show cause notices were issued to the companies in July 2021 under the Companies Act, 2017, leading to penal orders in March 2022.

Following appeals filed by the companies, the SECP's Appellate Bench confirmed the penal orders in May 2023. Subsequently, the companies appealed to the Islamabad High Court, which after conducting hearings, dismissed the appeals, citing lack of merit in the arguments presented.

The SECP reiterated that registration with the Commission does not permit companies to accept deposits from the public. Any unauthorized deposit-taking by companies is considered illegal under the Companies Act, 2017. The SECP advised the public to exercise caution and refrain from engaging with companies involved in unauthorized deposit-taking or illegal investment schemes.

It is crucial for companies to adhere to the regulations set forth by the SECP to ensure transparency and legality in their operations. The decision of the Islamabad High Court serves as a reminder that illegal financial activities will not be tolerated, and strict actions will be taken against violators. Public awareness and vigilance are key in preventing individuals from falling victim to fraudulent schemes.