Islamabad, June 15, 2024 – The Securities and Exchange Commission of Pakistan (SECP) issued a stern warning on Saturday, alerting the general public to a fraudulent car financing scheme being operated by an unincorporated entity known as Etihad Auto Solutions.
The SECP revealed that Etihad Auto Solutions has been offering car financing schemes requiring an advance or down payment of 25% at extremely low markup rates, which has caught the attention of potential car buyers. However, these enticing offers are part of a scam designed to deceive the public.
In a concerning development, the sponsors of Etihad Auto Solutions have also registered another company with a similar name, Etihad Auto Solutions (Private) Limited, under the Companies Act, 2017. This move appears to be a deliberate attempt to add legitimacy to their fraudulent activities.
The fraudulent scheme is being aggressively promoted through a web portal, falsely claiming that Etihad Auto Solutions (Private) Limited is a non-banking finance company (NBFC) registered with the SECP. This misinformation aims to lure unsuspecting individuals into believing that their investments and transactions are secure and regulated.
The SECP has categorically stated that neither Etihad Auto Solutions (Private) Limited nor Etihad Auto Solutions are licensed by the SECP as NBFCs, nor are they authorized to offer car financing services. The regulatory body strongly advises the public against engaging in any form of business or arrangement with these entities.
To address this issue, the SECP has already initiated action against both Etihad Auto Solutions (Private) Limited and Etihad Auto Solutions for offering car financing scheme. This includes shutting down their operations and referring the matter to the relevant law enforcement agencies for further investigation and action.
The SECP emphasized that the “Certificate of Incorporation” issued to a company merely confirms its registration with the SECP and does not grant the company the authority to raise deposits or launch investment schemes. The public is urged to exercise caution and conduct thorough due diligence before engaging in financial transactions with any entity.
In conclusion, the SECP’s warning serves as a critical reminder for the public to remain vigilant against fraudulent schemes. The regulatory body continues to monitor and take action against such entities to protect the interests of the public and maintain the integrity of the financial system.
