ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued a public warning against an unregistered entity named Etihad Auto Solutions, which has been offering car financing schemes requiring a 25% advance or down payment at exceptionally low markup rates. This warning comes after SECP discovered that the entity is operating fraudulently and misleading the public.

The sponsors behind Etihad Auto Solutions have further compounded the deception by registering another company under the Companies Act, 2017, with a similar name, Etihad Auto Solutions (Private) Limited. This move appears to be an attempt to legitimize their fraudulent operations and mislead the public into believing that they are a credible business.

Fraudulent Claims and Misleading Information
Etihad Auto Solutions is promoting its fraudulent scheme through the website https://etihadautosolutions.com/. The website falsely claims that Etihad Auto Solutions (Private) Limited is a non-banking finance company (NBFC) registered with the SECP. However, the SECP has clarified that this entity is not licensed as an NBFC and is not authorized to offer car financing services.

The SECP has taken action against both Etihad Auto Solutions and Etihad Auto Solutions (Private) Limited, including shutting down their operations and referring the matter to relevant law enforcement agencies. The public is advised to avoid any dealings with these entities, as they are neither licensed by the SECP nor allowed to offer any form of car financing services.

SECP’s Official Statement
The SECP’s official statement emphasizes that a “Certificate of Incorporation” only confirms a company’s registration with the SECP and does not grant permission to raise deposits or launch investment schemes. The public is reminded that any company claiming to offer financial services without proper licensing from the SECP should be regarded with suspicion and avoided.

The SECP has reiterated its commitment to protecting the public from fraudulent schemes and ensuring that financial services in Pakistan are provided by properly licensed and regulated entities. They urge the public to verify the legitimacy of any financial service provider by checking their licensing status with the SECP.

Protecting the Public
This warning is part of SECP’s broader efforts to safeguard the public from financial scams and fraudulent activities. By raising awareness about such schemes, the SECP aims to prevent the public from falling victim to these deceptive practices. The commission encourages individuals to report any suspicious financial schemes or entities to the SECP for further investigation and action.

The SECP also advises the public to conduct thorough research and due diligence before engaging in any financial transactions, especially those involving significant amounts of money. Understanding the risks and verifying the credentials of financial service providers can help prevent financial losses and protect personal financial well-being.

Conclusion
The SECP’s warning against Etihad Auto Solutions serves as a crucial reminder for the public to remain vigilant and cautious when dealing with financial service providers. Ensuring that a company is properly licensed and regulated by the SECP is essential to avoid falling prey to fraudulent schemes. The SECP continues to monitor and take action against such entities to maintain the integrity of Pakistan’s financial system and protect the interests of its citizens.

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