The Securities and Exchange Commission (SEC), on Tuesday, sealed the premises of Stockmatch Investments Ltd in Maiduguri, Borno State for allegedly engaging in illegal investment activities.
The Commission, in a statement made available to Nairametrics, said the sealing follows an avowed commitment to ensure that unregistered entities are not allowed to engage in capital market functions.
Illegal investment operations:
According to the SEC, the office of the company in Wulari Plaza on Lagos Street Maiduguri, was shut down for allegedly carrying out investment operations that fall within the ambit of fund management without registration by the Commission.
- “This company does not have registration of the SEC to conduct fund management activities and has been found to promise exorbitant rates of returns to lure investors. The SEC has exercised its powers under Section 13 (w) Investments and Securities Act 2007, to shut it down”
- The commission hereby notifies the investing public that neither this entity nor its investment platforms are registered by the SEC.
- “The public is hereby reminded that it is unlawful for any private enterprise whether incorporated as a company or not, to solicit funds from the public by whatever means, to fund its private ventures as doing this will be in contravention of the Investments and Securities Act, 2007″ the SEC stated.
Advice to the public:
The Commission, therefore, advised the public to always confirm from the commission whether an entity providing investment services has been duly registered and whether the investment schemes are authorized by it.
It warned that any member of the investing public dealing with unregistered entities was doing so at his/her own risk.
It further encouraged the public to exercise due diligence and caution in making investment decisions, adding that a list of valid operators can be obtained on its website.
Nairametrics reported that The Director-General of SEC, Lamido Yuguda during the commission’s second Capital Market Committee (CMC) briefing reminded the market players about a series of circulars issued by the Commission aimed at protecting investors from the activities of unregistered schemes.
Yuguda reiterated the Commission’s warning to the public regarding the activities of Binance, Luno, PaxFul, Coinbase, and other unregistered platforms, as investing in crypto assets carries a high level of risk and may result in total loss of investments.
The DG listed efforts already made by the capital market including that the SEC has amended its Anti Money Laundering and Countering the Financing of Terrorism Financing (AML/CFT/CPF) Regulation 2022 in line with the findings from the National Residual Risk Assessment (NRRA) exercise; New frameworks on the implementation of Targeted Financial Sanctions (TFS), Risk-based Supervision and guidance on Politically Exposed Persons (PEPs) were developed for the market.
Sec should allow Nigerians verify investment platform through their website