Nigerians have been warned by the Securities and Exchange Commission (SEC) to be weary in registering and investing on the proliferation of unregistered online investment and trading platforms, facilitating access to trading in securities listed in foreign markets.
SEC gave the warning in a circular to capital market operators on Thursday.
“The attention of the SEC has been drawn to the existence of several providers of online investment and trading platforms which purportedly facilitate direct access of the investing public in the Federal Republic of Nigeria to securities of foreign Companies listed on Securities Exchanges registered in other jurisdictions,” the statement read.
“These platforms also claim to be operating in partnership with Capital Market operators (CMOs) registered with the Commission.”
SEC said 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.
Accordingly, the SEC notified CMOs who work in concert with the referenced online platforms of the commission’s position and advised them to desist henceforth.
“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,” the statement added.
Watch Leakblast TVchannel from around the world
Get us on Whatsapp: +234(0)8181166425
Email Us: email@example.com
SUPPORT LEAKBLAST JOURNALISM OF INTEGRITY AND CREDIBILITY
Good journalism costs a lot of money.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble Endeavor.
By contributing to LeakBlast, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.