The Securities and Exchange Commission (SEC) of Nigeria has unveiled a bold new approach to tackle violations within the country’s capital markets. The commission announced that it would publish the names of erring capital market operators in its “name and shame” journal as part of its enforcement efforts. This initiative, which aims to bolster the integrity and transparency of the Nigerian capital market, will supplement existing penalties outlined in the Investments and Securities Act 2007.
In a recent move, the SEC revoked the registration of Mainland Trust Limited as a capital market operator and suspended Centurion Registrars Limited for failing to comply with regulatory directives and unresolved complaints. The SEC also advised affected clients to contact relevant bodies like the Central Securities Clearing System Plc for guidance on transferring their portfolios to other operators. This step highlights the SEC’s determination to address non-compliance and safeguard investor interests.
The new public shaming strategy is designed to strengthen the SEC’s commitment to zero tolerance for market infractions. By openly naming offenders, the commission seeks to encourage better adherence to market laws and regulations, enhancing overall market stability and investor confidence. In addition to these public announcements, the SEC reiterated that violators will still face the penalties specified under the country’s investment laws.
The SEC’s latest enforcement measures come amid ongoing efforts to combat illegal activities, including Ponzi schemes and pyramid operations. As part of its 2025 objectives, the commission also plans to focus on developing Nigeria’s commodities market while continuing its vigilance in regulating the capital market. Stakeholders have been urged to comply fully with regulatory guidelines to avoid severe sanctions.
SOURCE: PUNCH