Be cautious of illegal investment schemes through fractionalization of Real Assets

ISLAMABAD: To protect the general public from unlawful/illegal activities being carried out by various companies, the Securities and Exchange Commission of Pakistan (SECP), frequently issues public warnings advising the general public to refrain from investing in any fraudulent investment schemes.

SECP has noticed that below listed companies through their online platforms/websites are involved in illegal schemes regarding fractionalization of real estate assets and are selling those fractions to public at large.

Name of Company

Platform

Website address

Xstate Technologies (Private) Limited Company

Xstate Beta

https://www.xstate.com

Beacon Marketing (Private) Limited

Beacon crowd

Home

International Hospitality Investment Group (Private) Limited

IHIG fractions

https://ihigfractions.com

Dao Proptech (Private) Limited

DAO PROPTECH

https://daoproptech.com

Neo Cassa (Private) Limited

Neo CASSA

http://www.neocassa.com

None of these platforms have the approval for performing this function under the sandbox regulatory regime of the SECP. In terms of section 87(2) of the Securities Act, 2015, no person can sell securities to the public without prior approval of the SECP. Unlawful activity is a ground for winding up of such companies under section 301 of the Companies Act, 2017.

While SECP has initiated legal action/adopted legal course, against these entities for carrying unauthorized/illegal business activities, it is deemed appropriate to alert the public against possible misuse of registration status of the companies to mislead them. The general public, in their best interest, is advised to refrain from investing their hard-earned money into any unauthorized schemes.

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