Capital market regulator Securities and Exchange Commission (SEC) yesterday declared as illegal the activities of unregistered online investment and trading platforms that deal in facilitating access to securities, listed in foreign markets.
In a circular yesterday, SEC has noted the existence of several providers of online investment and trading platforms that purportedly facilitate direct access of the investing public in Nigeria to securities of foreign companies listed on securities exchanges registered in other jurisdictions.
SEC 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.
“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,” SEC circular stated.
