SEC to Publicly Shame Capital Market Violators in New Crackdown
The Securities and Exchange Commission (SEC) has unveiled a new enforcement strategy aimed at publicly naming and shaming capital market operators found guilty of violating market laws and regulations. This move is part of a broader effort to maintain integrity and protect investors in the Nigerian capital market.
SEC’s “Name and Shame” Initiative
In an announcement on its Instagram page on Sunday, the SEC revealed that erring operators will now have their names published in a ‘name and shame’ journal. This public disclosure will be in addition to existing sanctions under 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 stated.
Tougher Actions Against Defaulters
As part of this crackdown, the SEC recently took strict disciplinary actions against two capital market operators:
Mainland Trust Limited: Registration revoked due to non-compliance with regulatory directives and unresolved complaints.
Centurion Registrars Limited: Suspended, along with its directors and sponsored individuals, for regulatory breaches.
Directives for Investors & Market Stakeholders
• Clients of Mainland Trust Limited are advised to contact Central Securities Clearing System (CSCS) Plc to transfer their stocks.
• Clients of Centurion Registrars Limited should reach out to Africa Prudential Plc for portfolio transfers.
• Market institutions (including the Nigerian Exchange Group, Institute of Capital Market Registrars, and Chartered Institute of Stockbrokers) have been directed to cut ties with both firms.
What This Means for the Market
SEC is reinforcing its zero-tolerance policy on market infractions.
Capital market operators must ensure full compliance or risk public shaming and strict penalties.
Investors are urged to remain vigilant and conduct due diligence before engaging with market operators.
With the SEC also intensifying efforts to combat Ponzi schemes and develop Nigeria’s commodities market in 2025, these actions signal a new era of regulatory enforcement in the financial sector.
The Securities and Exchange Commission (SEC) has unveiled a new enforcement strategy aimed at publicly naming and shaming capital market operators found guilty of violating market laws and regulations. This move is part of a broader effort to maintain integrity and protect investors in the Nigerian capital market.
SEC’s “Name and Shame” Initiative
In an announcement on its Instagram page on Sunday, the SEC revealed that erring operators will now have their names published in a ‘name and shame’ journal. This public disclosure will be in addition to existing sanctions under 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 stated.
Tougher Actions Against Defaulters
As part of this crackdown, the SEC recently took strict disciplinary actions against two capital market operators:
Mainland Trust Limited: Registration revoked due to non-compliance with regulatory directives and unresolved complaints.
Centurion Registrars Limited: Suspended, along with its directors and sponsored individuals, for regulatory breaches.
Directives for Investors & Market Stakeholders
• Clients of Mainland Trust Limited are advised to contact Central Securities Clearing System (CSCS) Plc to transfer their stocks.
• Clients of Centurion Registrars Limited should reach out to Africa Prudential Plc for portfolio transfers.
• Market institutions (including the Nigerian Exchange Group, Institute of Capital Market Registrars, and Chartered Institute of Stockbrokers) have been directed to cut ties with both firms.
What This Means for the Market
SEC is reinforcing its zero-tolerance policy on market infractions.
Capital market operators must ensure full compliance or risk public shaming and strict penalties.
Investors are urged to remain vigilant and conduct due diligence before engaging with market operators.
With the SEC also intensifying efforts to combat Ponzi schemes and develop Nigeria’s commodities market in 2025, these actions signal a new era of regulatory enforcement in the financial sector.