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Online Investment: SEC Warns Nigerians On Proliferation Of Unregistered Platforms

The Securities and Exchange Commission (SEC) has warned the investing public on the proliferation of unregistered online investment and trading platforms allegedly providing access to trading in securities listed in foreign markets.

In a circular to Capital Market Operators issued in Abuja, the management of the Commission said it is aware of the existence of many of the unregistered platforms in the country, “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.”

“These platforms also claim to be operating in partnership with Capital Market operators (CMOs) registered with the Commission”. The circular read.

SEC categorically noted 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.

Director-General, SEC, Lamido Yuguda

“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” .

Meanwhile, the Commission has warned CMOs working in alliance with the unregistered online platforms to discontinue forthwith.

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