Islamabad, Pakistan – In a significant ruling, the Islamabad High Court has upheld penalties imposed by the Securities and Exchange Commission of Pakistan (SECP) against Shaukat Marwat Group of Companies and Shaukat Marwat Estates & Builders for engaging in illegal deposit-taking activities.
The court’s decision comes after the SECP had imposed penalties of Rs. 50 million and Rs. 10 million, respectively, on the two companies for violating applicable laws. The companies had appealed the SECP’s orders, but the Islamabad High Court dismissed their appeals, affirming the regulatory body’s decision.
The SECP had launched an investigation into the companies’ activities after discovering they were conducting unauthorized deposit-taking activities and promoting them through social media campaigns. The regulator had issued show cause notices to the companies in July 2021, leading to the imposition of penalties in March 2022.
The Islamabad High Court’s ruling serves as a warning to companies engaging in unauthorized deposit-taking activities, emphasizing the SECP’s commitment to protecting investors and maintaining market integrity.
STAY VIGILANT, INVESTORS WARNED
The SECP has reminded the public that only licensed entities are authorized to seek deposits, cautioning against investing in unauthorized schemes offered by companies involved in illegal activities.
