SECP Warns Against Investing In ‘Real Estate Fractionalization’ Schemes
The Securities and Exchange Commission of Pakistan (SECP) has recently started to refrain from investing in illegal schemes that promote the Fractionalization of Real Estate. They issued a list of real estate companies in a press release involved in the fractionalization of real estate, not approved by SECP.
Xstate Technologies, Beacon Marketing, International Hospitality Investment Group (Private) Ltd, Dao Proptech, and Neo Cassa are amongst the ones involved in this illegal selling. People should avoid these companies at any cost as they are committing fraud.
People find it difficult to differentiate between legal and illegal real estate activities, especially on the internet. It is a welcoming step from SECP to warn people about the fraudulent activities and name the culprits behind them.
According to the Securities Act, no one can sell securities before legal approval from SECP. SECP can take strict action against the culprits under the Companies Act and, in some cases, seal them completely.
People are usually driven by the pricing of these real estate properties, and this is why they fell prey to these companies. SECP felt that it was their responsibility to let the people know of the culprits behind the fractionalization of properties.
Consumers should refrain from investing their money in these schemes to avoid future inconvenience. The problem remains as people may not identify the culprits in the first place.
This has led to multiple problems in the past where people were misled into buying properties. After they had bought a property, the rightful owner would make his claim on the land, and they lost their money and land as well.
SECP has taken an initiative to name the culprits behind the illegal activities to save people’s money. This will let people choose before investing their hard-earned money and invest wisely.
Contact Manahil Estate for safe and secure investment advice.
