The Securities and Exchange Commission (SEC) has alerted investors on the activities of unregistered online investment and trading platforms, which always promise access to securities, listed in foreign markets.
It warned investors against patronising such unregistered platforms, noting that many of them are scammers.
“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 registered with the commission,” it stated in a circular.
The commission said the unregistered platforms also claim to be operating in partnership with capital market operators (CMOs) registered with the Commission, warning such CMOs to desist henceforth.
It stated 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.