The Securities and Exchange Commission (SEC) has revoked the certificate of incorporation of Digicars Auto Trading OPC due to the company’s serious misrepresentation of its business operations.
Upon investigation, the SEC discovered that Digicars had been involved in financing activities that required authorization from the commission.
However, the articles of incorporation and certificate of incorporation of the company do not indicate any authorization for engaging in such financing activities.
According to Digicars’ articles of incorporation, listed as the company’s primary purpose is the sale of various motor vehicles and motorcycles. Yet, the SEC found that Digicars had devised a scheme to entice potential customers by offering lower monthly installment or amortization rates compared to those provided by motor vehicle dealers.
Previously, the SEC had prohibited Digicars from operating as a financing company. Furthermore, Digicars was ordered to present a valid justification as to why it should not be held accountable for the aforementioned violation.