Stock & Share Trading Company, which is based in Australia, had previously made similar offers for debentures issued by Strategic Finance Limited and St Laurence Finance Limited.

The Securities Commission has reminded investors to be cautious of any unsolicited offer to purchase their investments, especially where the offer is well below face value and urges investors to seek professional advice before making any decision to accept the offer.

"When a finance company is in moratorium it is very difficult to accurately assess the value of the company's debentures.  The debentures are not trading on any organised market, so there is no market price against which investors can assess the offer."

Investors in Dorchester Finance have voted to approve the capital reconstruction plan.

"In making their decision whether or not to accept the offer to purchase their debentures, debenture-holders should consider, together with other relevant factors, the value that the directors of Dorchester Pacific, the parent company of Dorchester Finance, have attributed to the securities to be issued under that plan," the commission says.

Under securities legislation it is not illegal to offer to buy securities below their face value.  Any offer to buy securities from investors must not be misleading or deceptive.