KUALA LUMPUR (Feb 5): The Securities Commission Malaysia (SC) has issued an alert about a potential “clone firm” investment scam that is believed to impersonate Xeraya Capital Sdn Bhd.

The SC said there is a possible clone of Xeraya Capital impersonating the firm as www.xeraya-capital.com, offering high returns for a minimum investment of RM550 within 24 hours.  

Xeraya Capital, which is owned by sovereign wealth fund Khazanah Nasional Bhd, acknowledged the SC alert on the firm’s official website at www.xeraya.com.

It however stressed that it is a legitimate business operator with a restricted capital markets services licence.

"Xeraya Capital is a legitimate business operator. There are individuals and companies who have misused the name and falsely represented Xeraya Capital in various online investment scams.

"Xeraya Capital holds a restricted capital markets services licence issued by the SC, which allows us to conduct equity trading activities and provide investment advice as a licensed broker," the notice on the firm’s website read.  

Besides www.xeraya-capital.com, other recently-added entries in the SC's Investor Alert List include Insaaph Company Sdn Bhd, BeGold Trading Sdn Bhd and Fullerton Markets International Ltd.  

The full updated list can be obtained here. 

In November last year, the SC cautioned the public of a sharp increase in clone firm scams, perpetrated by companies that fraudulently impersonate legitimate entities including misusing names and logos of public listed companies (PLCs).

The regulator said these clone firms offer non-existent investment opportunities including in the shares of PLCs, promising unrealistically high returns within a short span of time.

The SC also issued an alert in May 2020 against fraudulent clone firms posing as licensed capital market intermediaries.