On social media, the 4D Group of Companies and its owner, Mr. Muhammad Asif, have promoted an illegal investment and deposit-taking scheme to which the Securities and Exchange Commission of Pakistan (SECP) has issued a public warning. The scheme is promoting 8-12% monthly returns that are not credible and are also against the legal and regulatory practices in Pakistan. The regulator encourages citizens to remain vigilant and not share their money or personal information with unregistered individuals or organizations.
What SECP Announced
As per the SECP, 4D Group of Companies is neither incorporated nor registered with the commission according to the Companies Act, 2017. It also has no legitimacy to deposit or establish anything into the Guardian of Depository. In this regard, all investment or deposit-taking conducted by 4D Group is unlawful and puts the populace at a severe risk of losing money. The case has been referred to the relevant investigative bodies for further action against the individuals involved.
Why the 4D Scheme Is Illegal
In Pakistan, no secondary shall solicit the attention of the public to make an investment or a deposit without being licensed and monitored by the SECP (and where relevant, the State Bank of Pakistan). Platforms that are not registered, which promise guaranteed returns or abnormally high returns like 8-12% per month, do not generally comply with disclosure, governance, and risk management requirements. The SECP made it clear that, regardless of whether a company had a Certificate of Incorporation, it only provides evidence of registration and, in itself, does not have the power to raise deposits or to issue investment products.
Red Flags and How to Verify
Promises of fixed, high monthly returns; a sense of urgency to make investments; the unavailability of audited financial statements; no SECP licensing; and closed-group messaging or informal collections should be treated by investors as red flags. Check the status of the entity on the official SECP site and do not share CNIC, bank details, or funds with promoters who cannot show any type of regulatory authorization.
Legal Context and Potential Penalties
Any attempt to unlawfully take deposits or facilitate unlicensed solicitation of investments can lead to enforcement measures, such as account freeze, criminal prosecution, and fines within the framework of the Companies Act, 2017, and the other relevant laws. The SECP is reiterating that the safeguarding of the population against fraudulent schemes is a priorit,y and the regulator is also keeping an eye on social media fraudulent solicitation.
How to Report and Get Help
Citizens can report suspected fraudulent schemes either using the SECP Complaints Management System (https://xs.secp.gov.pk) by email at scams@secp.gov.pk or by using the SECP Toll-Free Helpline, 0800-88008. Screenshots, payment receipts, and promoter information can help investigators move quickly. In case you suspect that you have already been defrauded, call your bank in order to seek to block or revoke transfers and file a complaint with law enforcement, with your SECP report attached.
Conclusion
The advisory issued by SECP indicates clearly that the recommended investment scheme, launched by the 4D Group, is unlawful and risky. It is advisable to avoid a platform that is not licensed to receive deposits or handle investments, particularly those with guaranteed high monthly returns. Always check authorisation before any communication using the official SECP and report any suspicious activities so that others can avoid financial damage.
