The Nigeria Security and Exchange Commission on Thursday afternoon warns Nigerians on online platforms that are not registered, but offer access to trading in foreign markets.
In a statement released, the NSE says, “The attention of the Securities and Exchange Commission (the Commission) 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 (CMOs) registered with the Commission.
“The Commission categorically states 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. Accordingly, CMOs who work in concert with the referenced online platforms are hereby notified of the Commission’s position and advised to desist henceforth.
“The Commission enjoins the investing public to seek clarification as may be required via its established channels of communication on investment products advertised through conventional or online mediums.”
According to NSE, these platforms are not registered in Nigeria and they are acting against the law. This move will surely affect many Nigerians and has already gained backlash from Nigerians. Examples of platforms tackled by the NSE are Bamboo, Trove, and Risevest, that are unregistered with the SEC, but popular among many youths in Nigeria for investment in foreign markets.
This is a move coming several months after the CBN banned banks from involving in any cryptocurrency transactions, which sparked reactions from Nigerian youths.
In a statement released, the NSE says, “The attention of the Securities and Exchange Commission (the Commission) 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 (CMOs) registered with the Commission.
“The Commission categorically states 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. Accordingly, CMOs who work in concert with the referenced online platforms are hereby notified of the Commission’s position and advised to desist henceforth.
“The Commission enjoins the investing public to seek clarification as may be required via its established channels of communication on investment products advertised through conventional or online mediums.”
According to NSE, these platforms are not registered in Nigeria and they are acting against the law. This move will surely affect many Nigerians and has already gained backlash from Nigerians. Examples of platforms tackled by the NSE are Bamboo, Trove, and Risevest, that are unregistered with the SEC, but popular among many youths in Nigeria for investment in foreign markets.
This is a move coming several months after the CBN banned banks from involving in any cryptocurrency transactions, which sparked reactions from Nigerian youths.