“It is Unlawful”: SEC Closes Stockmatch's Offices In Borno for Unauthorised Investments
- SEC said it closed down Stockmatch offices because of unauthorised investment operations
- The commission stated that the company is not registered to conduct fund management activities
- It advised the public to check the registration status of any platform before dealing with them
Stockmatch Investments Limited in Maiduguri, Borno State, was sealed by the Securities and Exchange Commission (SEC) Nigeria on Monday, August 29, 2023, due to allegations that it engaged in unauthorized investment operations.
The move was conducted as part of a fresh offensive campaign against Ponzi scheme promoters in the nation.
Source: UGC
Legit.ng earlier reported that the Director General of SEC, Lamido Yuguda, said unregistered platforms such as Binance, Luno, PaxFul, and Coinbase could result in a significant level of risk and the complete loss of investments for operators.
This came after the commission officially declared that Binance Nigeria Limited, a cryptocurrency exchange, is operating illegally in the country.
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Company involved in unauthorized investment
According to a report, SEC claimed the company's office in Wulari Plaza on Lagos Street in Maiduguri was closed for allegedly engaging in fund management-related investment activities without approval.
The commission added that the 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.
It added that the closure was in line with the Securities Act 2007.
It stated:
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.
Speaking on the development, the commission asked the public to always check with the commission to see if an entity offering financial services has been properly registered and if the investment plans are certified.
It cautioned that doing business with unregistered businesses was a risk to the investing public.
The SEC also advised the public to proceed with prudence and due diligence when making investment decisions, noting that a list of legitimate operators could be found on its website.
SEC worried as Nigerians abandon N190bn dividends with companies
According to the Securities and Exchange Commission, unclaimed dividends in the capital market have skyrocketed to an estimated N190 billion, Legit.ng had reported.
SEC Director-General Lamido Yuguda disclosed this at the second-post capital committee media briefing on Friday, August 24, 2023.
The SEC DG mentioned identity management issues in Nigeria as a critical factor contributing to the spike in unclaimed dividends.
Source: Legit.ng
