Islamabad, September 25, 2023 – The Securities and Exchange Commission of Pakistan (SECP) has issued a stern warning to the general public, cautioning them against investing in fraudulent investment schemes promoted by the ISMMART Group.
This warning was conveyed through an official statement issued on Monday.
The SECP’s notice draws attention to the fact that an entity known as “Ismmart Group,” owned by Shaukat Ullah Khan, is allegedly soliciting deposits from the public by offering unrealistic monthly returns. The SECP has clarified that this entity does not possess the necessary license or authorization to collect deposits from the public.
Furthermore, it is essential to note that the SECP had previously imposed penalties on Shaukat Ullah Khan for promoting illegal investment schemes through companies affiliated with the Shaukat Marwat Group. In addition to the penalties, Shaukat Ullah Khan has been disqualified from holding the position of chief executive or director in any company operating in Pakistan. The matter has also been referred to the National Accountability Bureau (NAB), which has initiated an inquiry into Mr. Shaukat Ullah Khan and his associated companies.
As a consequence of his disqualification from forming a company, Shaukat Ullah Khan has reportedly registered 12 new companies through family members and associates. In an attempt to create the impression that Ismmart Group is a substantial global business entity, he has also registered a number of one-pound companies with Companies House in the United Kingdom.
The names of companies associated with the Ismmart Group have been added to the list of entities involved in unauthorized activities, which is publicly available on the SECP’s website. Additionally, the SECP has initiated investigation proceedings against these companies. However, it is noted that Shaukat Ullah Khan has challenged the investigation proceedings in the Islamabad High Court, which has temporarily restrained the SECP from issuing a final investigation order.
The SECP, in its public warning, explicitly advises against depositing or investing funds with Shaukat Ullah Khan and any companies affiliated with the Ismmart Group. These entities are not authorized to accept deposits or investments from the public in any form or arrangement. Investors and the public are strongly urged to exercise caution and refrain from engaging with such entities engaged in unauthorized and potentially fraudulent activities.
