ISLAMABAD: The Securities and Exchange Commission of Pakistan has shut down fraudulent activities of M/s. BizNas.Com Pakistan (Private) Limited.
A timely action by the SECP’s Karachi-based Companies Registration Office (CRO) has closed the fraudulent company and hence saved a large number of prospective investors from losing their hard-earned money.
The Sindh High Court has passed an order for compulsory winding up of the company under section 305 of the 1984 Companies Ordinance.
The official assignee has been appointed as official liquidator of the company.
The company was registered with the CRO on March 5, 2002. The primary objectives of the company were designing and developing computers software packages.
The company operated a website, owned by its parent company, through which it provided different IT courses and also ensured availability of space for hosting its website to its members.
The business mechanism of the company was based on a Pyramid or Ponzi scheme, in which returns are paid to earlier investors/members, entirely out of the money paid into the scheme by new investors/members. The company’s activities were objectionable because they were not provided in its Memorandum of Association.
In addition, the company was engaged in activities of fraudulent nature and offered incentives only for getting deposits from other investors.
The show-cause notices were issued to the company but the company failed to clarify its position.
The CRO initiated the winding up proceedings against the company and a case was filed in the Sindh High Court in 2002, which has now ordered compulsory winding up of the company.
