Nigeria’s SEC probes five market operators
Nigeria’s Securities and Exchange Commission (SEC) has said it is investigating complaints it received against five Capital Market Operators (CMOs), namely, Bytofel Securities and Trust Limited, Jenkens Investment Limited, Securities Solutions Limited, Wizetrade Capital & Asset Management Limited and Elyon Assets Management Limited.
Consequently, SEC invited 24 Directors and 11 Sponsored Individuals from the above mentioned firms to a meeting with the Commission from Tuesday November 15th –Thursday November 17th.
The SEC in expression of its commitment towards investors protection, had earlier banned the Managing Director of BGL Securities Limited, Mr. Albert Okumagba along with Mr. Peter Adebola, from further participation in capital market activities in the country for 20 years for market rules infractions, after which they were additionally fined N100,000 each, for breach of the code of conduct for capital market operators and their employees.
The SEC employs stringent disciplinary actions against capital market offenders, as was the case for investigations following the receipt of several complaints against Okumagba and BGL Securities, and the discovery of indebtedness to petitioners that stood at about N2.185 billion.
The SEC in a similar but different circular also publicized a hearing notice on the matter of the investment and securities act 2007, before the Securities and Exchange Commission Administrative Proceedings Committee (SEC APC) on rivers state ministry of finance & 32 others versus BGL Plc & 30 others.
The hearing proceedings as highlighted by the SEC were on violation of sec rules on separation of clients funds from company’s funds; performance of a capital market function without registration; non- compliance with the code of corporate governance of the commission; carrying on business with negative shareholders’ funds; and promoting/ marketing products not registered by the commission.
Other infractions include, non – compliance with the commission’s rules relating to assets mix ratio; unauthorised sale of shares; and failure/ refusal to resolve client’s complaints; other violations of the investments and securities act, 2007 and sec rules and regulations.
The SEC noted that the matter above which was slated for hearing on the 5th and 6th of August, 2015 was postponed as a result of an order of the federal high court, but has now been rescheduled to hold on Thursday 8th December, 2016 at the SEC’s head office in Abuja.
