According to sources report citing a regulator statement, the Securities and Exchange Commission of Pakistan (SECP) has concluded adjudication proceedings against B4U Group and its sponsors for raising illegal deposits from the public and operating pyramid schemes in violation of the Companies Act, 2017.
The business regulator announced that, after following the legal process, it has barred the B4U Group’s sponsors from serving as directors of any company for a period of five years. In addition, it has slapped a Rs100 million penalty on each of its sponsors.
The SECP has approved the winding up of all 18 B4U Group firms and assessed a Rs200 million penalty on each.
B4U Group has been hit with penalties totaling Rs4 billion.
Furthermore, according to SECP, the group sponsors will be prohibited from forming a new corporation under the Act.
The 18 businesses were all formed during the last two years. Mr. Saif-ur-Rehman and his immediate family members are the principal sponsors of B4U Group.
