SEC to Publicly Sanction Capital Market Rule Violators

The Securities and Exchange Commission (SEC) has announced its intention to publicly name and shame capital market operators found guilty of violating regulatory laws.

This measure, aimed at maintaining the integrity of the Nigerian capital market, will be featured in the SEC’s “name and shame” journal.

According to the commission, “This enforcement strategy underscores the commission’s dedication to safeguarding the integrity and stability of the Nigerian capital market, protecting investors, and ensuring strict adherence to established rules and regulations.”

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As part of its broader enforcement efforts, the SEC recently revoked the registration of Mainland Trust Limited due to non-compliance with directives and unresolved complaints. Similarly, Centurion Registrars Limited and its directors have been suspended from participating in capital market activities.

The SEC has advised clients of the affected companies to contact designated brokers for assistance with transferring their portfolios. It has also directed other market institutions to cease dealings with these companies.

Reaffirming its zero-tolerance policy for regulatory infractions, the SEC emphasized that public disclosure of violators will complement existing sanctions under the Investments and Securities Act 2007. The commission urged all stakeholders to adhere to market regulations to avoid penalties.