Selangor Journal
Malaysian ringgit notes are seen in this photo illustration. — File picture REUTERS

Fraud investment scheme: Ensure investment companies have prospectus — MHO

KUALA LUMPUR, April 28 — Members of the public who wish to make investments offered by any company need to ensure that the company has a prospectus certified by the Securities Commission (SC) to avoid being caught in investment scheme scams.

Malaysian International Humanitarian Organisation (MHO) secretary-general Datuk Hishamuddin Hashim said the prospectus is a document for share offerings to help investors make investment decisions with more information.

“One of the interesting things about this prospectus is that the risks for the investment are also stated. Invest in a company that is regulated, that has compliance and has a prospectus approved by the SC,” he said in the Ruang Bicara programme aired by Bernama TV, last night.

He said many people are easily convinced by the information memorandum issued by a company so much as they decided to make an investment.

“This information memorandum tells about investment details but there are no checks and balances, for investors, investing in companies whose prospectus has been approved,” he said.

In the meantime, former Inspector-General of Police Tan Sri Musa Hassan said investigations involving investment scheme fraud cases required the cooperation of various agencies including the Royal Malaysia Police, SC and Bank Negara.

According to him, this is because fraud in investment schemes involves various acts including the Penal Code, the Companies Act 2016, the Capital Markets and Services Act 2007 and the Financial Services Act 2013.

— Bernama

Top Picks

US Senate passes bill to force TikTok divestment or ban

Cape Town to become Africa’s wealthiest city by 2030 — Report 

Ringgit rebounds on softer US dollar