The Securities and Exchange Commission (SEC) will soon begin to publicly name and shame capital market operators found guilty of violating market laws and regulations.
This is just as it announced that the cancellation of the registration of Mainland Trust Limited and the suspension of Centurion Registrars.
The commission, in a statement, said the names of erring operators would be published in its “name and shame” journal as part of a broader strategy to enforce compliance and maintain integrity in the Nigerian capital market.
This new measure, the commission said, is in addition to existing sanctions and penalties outlined in the Investments and Securities Act 2007 and the SEC Rules and Regulations.
“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,” SEC stated.
The commission advised stakeholders and capital market operators to take note of the new enforcement approach and ensure full compliance with regulatory requirements.
Meanwhile, in the circular announcing the sanctions against the two firms, it said the decision to cancel the registration of Mainland Trust Limited as a capital market operator was based on “the company’s failure to comply with regulatory directives and non-resolution of several complaints against it.”
The commission advised all clients of Mainland Trust Limited to contact the Central Securities Clearing System Plc for guidance on transferring their stocks to another stockbroker.
Similarly, the SEC announced the suspension of Centurion Registrars Limited, including its directors and sponsored individuals, from all capital market activities.
SEC further advised Centurion Registrars’ clients to contact Africa Prudential Plc for guidance on transferring their portfolios and also ordered capital market institutions and trade associations to cease dealings with the company and its key officers.
