SEC warns Firms Dealing on Illegal Foreign Investment
The Securities and Exchange Commission (SEC) has warned Nigerian investors against patronising unregistered online investment and trading platforms, which boast of facilitating access to securities, listed in foreign markets.
In a circular just released, the Commission noted the proliferation of such unregistered online platforms, which are contrary to Nigerian capital market rules, luring Nigerians into securities listed in foreign markets.
According to the circular, SEC has noted the existence of several providers of online investment and trading platforms which purportedly facilitate direct access of the investing public in Nigeria to securities of foreign companies listed on securities exchanges registered in other jurisdictions.
The commission stated that these unregistered platforms also claim to be operating in partnership with capital market operators (CMOs) registered with the Commission, warning such CMOs to desist henceforth.
SEC stated that by the provisions of Sections 67-70 of the Investments and Securities Act (ISA), 2007 and Rules 414 & 415 of the SEC Rules and Regulations, only foreign securities listed on any exchange registered in Nigeria may be issued, sold or offered for sale or subscription to the Nigerian public.
“The Commission enjoins the investing public to seek clarification as may be required via its established channels of communication on investment products advertised through conventional or online mediums,” SEC circular stated.
The latest circular came on the heels of recent efforts by SEC to strengthen issuance process and protect investors from bogus offers.
SEC recently introduced a major amendment to disclosures and information to be included in a prospectus for any public offering as part of efforts to further safeguard the investing public from false claims and bogus offerings.