The Securities and Exchange Commission (SEC) has introduced new regulations governing the issuance and allotment of securities by private companies. According to a press statement, violators of these rules face significant penalties, including fines starting at N10 million and increasing daily, suspension or withdrawal of registration, disgorgement of proceeds, and potential ratification or rescission of transactions by the Commission.
The regulations apply to debt securities issued by private companies through public offerings, private placements, or other approved methods. They also cover registered exchanges and platforms that trade such securities and registered capital market operators involved in the issuance and allotment process.
Under the new rules, private companies must list their securities on a registered securities exchange within 30 days of completing allotment. To be eligible for issuance, a private company must be duly incorporated under the Companies and Allied Matters Act (CAMA) or other relevant laws and have a track record of at least three years of operation.
Source: This Day Live