Additional, the sponsors wouldn’t be allowed to include any new firm beneath the Act.
As well as, the fee has granted sanction for winding up all 18 corporations of the B4U Group and imposed a penalty of Rs200 million on every firm. Mixture penalties, amounting to Rs4 billion have been imposed on the B4U Group.
The fee concluded the adjudication proceedings towards the B4U Group and its sponsors for elevating unlawful deposits from the general public and working pyramid schemes, in violation of the Firms Act, 2017.
The B4U Group contains 18 corporations included beneath the Act, in addition to 5 unincorporated enterprise setups. All of the 18 corporations have been registered over the past two years.
The Securities and Change Fee of Pakistan is absolutely dedicated to safeguarding the curiosity of most people towards the prohibited enterprise practices comparable to unlawful deposit elevating, Ponzi and pyramid schemes, and so forth.
Along with initiating enforcement actions, the fee has repeatedly been issuing essential press releases, again and again, cautioning most people to not put money into any such unlawful and doubtful funding plans, whereas taking strict enforcement motion towards the businesses and sponsors that violate their mandate.