The Securities and Exchange Commission has announced plans to publicly shame capital market operators found guilty of violating market laws and regulations.
The commission, in a statement on its Instagram page on Sunday, 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.
It stated that the measure would be 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,” the 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.
In a recent development, the Securities and Exchange Commission revoked the registration of Mainland Trust Limited as a capital market operator and suspended Centurion Registrars Limited, citing failure to comply with regulatory directives and unresolved complaints.
In a circular issued at the weekend, the commission said, “The Securities and Exchange Commission hereby notifies the general public that the registration of Mainland Trust Limited as a capital market operator has been cancelled with immediate effect.”
It added that the decision 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.
Additionally, the SEC directed the Nigerian Exchange Group, the Institute of Capital Market Registrars, the Chartered Institute of Stockbrokers, CSCS Plc, and all capital market trade associations to “discontinue capital market-related dealings with the company.”
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. It also ordered capital market institutions and trade associations to cease dealings with the company and its key officers.
As part of its enforcement measures, the SEC revealed plans to name publicly capital market operators found to have violated regulations.
According to the commission, “In furtherance of the commission’s unwavering commitment to the maintenance of a zero tolerance for infractions in the Nigerian capital market and in line with its revised enforcement strategies, stakeholders and the general public are hereby informed that henceforth, the names of capital market operators found to have violated market laws/regulations would be published in the Commission’s ‘name and shame’ journal.”
SEC emphasised that the publication would be in addition to the sanctions and penalties prescribed in the Investments and Securities Act, 2007, and 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,” the SEC added.
The commission urged all capital market stakeholders and operators to comply with regulations to avoid sanctions.
The PUNCH reported that the Securities and Exchange Commission had vowed to intensify efforts to stamp out Ponzi and pyramid schemes in 2025, while also focusing on developing Nigeria’s commodities market.
