…warns operators against sharp practices
The Securities and Exchange Commission has said that it is no longer business as usual for market operators, as it has made all arrangement to scrutinise all market operations to curb infractions.
The commission, in a message to investors, said this was in a bid to recover lost confidence in the Nigerian capital market, even as it assured all stakeholders of its commitment to ensure the continued development and stability of the capital market.
“While no stone is being left unturned to recover investor’s monies illegally converted by market operators, our attention had also been drawn to various publications in Nigerian national dailies, alleging that investors in the Nigerian capital market had recently been defrauded by a licensed member of the Nigerian Stock Exchange,” the Commission said.
According to the Commission, “As the apex regulatory authority of the Nigerian capital market, the SEC would do everything within the confines of the Investments and Securities Act 2007 and the rules and regulations made pursuant to the Act, to ensure the protection of investors and their investments in the market.”
It said it that has established a robust framework for investigating complaints received from investors, adding, “The Commission also has an excellent enforcement mechanism and continues to maintain zero tolerance to any form of infraction in the market.
Furthermore, the Commission adopts a risk-based monitoring and supervision of operators and institutions in the market to forestall potential systemic collapses.” It said, “The Commission imposes stiff sanctions on erring operators to serve as a deterrent within the limits permitted by law, while infractions with elements of criminality are referred to the law enforcement agencies for prosecution as provided for under Section 304 of the ISA 2007.
In furtherance of this, the Commission has developed a thriving partnership with the Nigerian Police Force and the Economic and Financial Crimes Commission to prosecute these matters.
“Trading platforms and other self-regulatory organisations in the Nigerian capital market have viable rules/risk management strategies and have also adopted corporate governance standards that conform to global best practice.
The Commission continues to collaborate with these platforms to ensure the eradication of all forms of market manipulations.” Going further, it added that “in line with its commitment to implement the Nigerian Capital Market Master Plan (CMMP 2015- 2025), the SEC has in recent times launched several notable initiatives which would galvanise the market, safeguard investors’ portfolio and contribute to the overall transformation of the economy.
These include the e-dividend, Direct Cash Settlement, and Full Dematerialisation and Recapitalization exercise, Corporate Governance Scorecard and the establishment of the National Investors’ Protection Fund.
“With respect to the activities of Partnership Investment Company Limited and Partnership Securities Limited in the Nigerian Capital Market, the Commission wishes to state that it has had all parties’ meeting with some of the parties concerned and further investigations are ongoing.”
