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The Securities and Exchange Commission (SEC) has announced plans to publicly shame capital market operators found guilty of violating market laws and regulations. In a statement on its Instagram page, the commission said, “The names of erring operators would be published in its ‘name and shame’ journal as part of a broader strategy to enforce compliance and maintain integrity in the Nigerian capital market.”
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The SEC emphasised that this measure would be in addition to existing sanctions and penalties outlined in the Investments and Securities Act 2007 and the SEC Rules and Regulations. “This enforcement strategy underscores the commission’s dedication to safeguarding the integrity and stability of the Nigerian capital market, protecting investors, and ensuring strict adherence to established rules and regulations,” the SEC stated.
The commission advised stakeholders and capital market operators to take note of the new enforcement approach and ensure full compliance with regulatory requirements. Recently, the SEC revoked the registration of Mainland Trust Limited as a capital market operator and suspended Centurion Registrars Limited, citing failure to comply with regulatory directives and unresolved complaints.
In a circular, the commission said, “The Securities and Exchange Commission hereby notifies the general public that the registration of Mainland Trust Limited as a capital market operator has been cancelled with immediate effect.” The decision was based on “the company’s failure to comply with regulatory directives and non-resolution of several complaints against it.”
For further information, read more details here
The SEC advised clients of Mainland Trust Limited to contact the Central Securities Clearing System Plc for guidance on transferring their stocks to another stockbroker. Similarly, the SEC announced the suspension of Centurion Registrars Limited, including its directors and sponsored individuals, from all capital market activities.
The SEC further advised Centurion Registrars’ clients to contact Africa Prudential Plc for guidance on transferring their portfolios. It also ordered capital market institutions and trade associations to cease dealings with the company and its key officers.
As part of its enforcement measures, the SEC revealed plans to name publicly capital market operators found to have violated regulations. “In furtherance of the commission’s unwavering commitment to the maintenance of a zero tolerance for infractions in the Nigerian capital market… stakeholders and the general public are hereby informed that henceforth, the names of capital market operators found to have violated market laws/regulations would be published in the commission’s ‘name and shame’ journal.”
The SEC emphasised that the publication would be in addition to the sanctions and penalties prescribed in the Investments and Securities Act, 2007, and SEC Rules and Regulations. “This enforcement strategy underscores the Commission’s dedication to safeguarding the integrity and stability of the Nigerian capital market, protecting investors, and ensuring strict adherence to established rules and regulations,” the SEC added.
The commission urged all capital market stakeholders and operators to comply with regulations to avoid sanctions. In line with its commitment to protecting investors, the SEC has also vowed to intensify efforts to stamp out Ponzi and pyramid schemes in 2025 while focusing on developing Nigeria’s commodities market.
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