The Security and Exchange Commission of Pakistan (SECP) issued a statement on Monday clarifying that crowdfunding is not allowed in Pakistan. The regulator warned the public not to be deceived by such false programs.
The news has caught many techies by surprise, since crowd funding all over the world is considered as the major source of funds for startups and novel business ideas.
The regulator has issued the statement after noticing that a Facebook page with the title of “Innovative Crowd Funding Project Pvt-Ltd Pakistan” is creating awareness about crowd funding investment in Pakistan. The statement from the SECP also explains that crowd funding is not an option for startups and companies located in Pakistan.
The SECP statement explicitly prohibits citizens of Pakistan from engaging in any crowd funding activity. “It seems that the company is involved in raising funds through crowdfunding. In this regard, the SECP would like to clarify that no company with the name of “Innovative Crowd Funding Project Pvt-Ltd Pakistan” is registered with it,” the regulator explained.
“It is further clarified that crowd funding is not allowed in Pakistan and no company can raise funds through this scheme,” the SECP clarified in the statement.