SEC Seals Kano-based Firm Over Illegal Capital Market Activities

SEC Seals Kano-based Firm Over Illegal Capital Market Activities

SHARE:

Post Views: 83 The Securities and Exchange Commission (SEC) on Wednesday said it sealed off the premises of Dantata Success and Profitable Company, Ka...

Dangote Group, Zenith, UBA, Shine At Maiden CAMCAN Capital Market Awards
Investors Cross 400m Units Of FBN Holdings In Off-Market Trade For N5bn
Oil inches up on Venezuela sanctions, but China slowdown weighs

The Securities and Exchange Commission (SEC) on Wednesday said it sealed off the premises of Dantata Success and Profitable Company, Kano, for engaging in illegal capital market activities.
A statement by the commission said the company was shut down for carrying out investment operations that falls within fund management without the requisite license. “The account of the company has been frozen, the promoters arrested by the Nigeria Police Force and are undergoing interrogation,” the commission added.
The strategy of the company is to solicit for funds from unsuspecting members of the public by enticing them with returns of monthly interest on investment of between 25 and 50%, depending on the nature and investment type.
The company also set a registration period of February 5 to 15 in one of its numerous notices directing all prospective customers to make deposits into designated bank accounts.
The company sells its forms to prospective investors according to their investment plans ranging from N1,000 to N3,000, with the minimum investable amount being N50,000 and the maximum, N5,000,000.
The investment period of the scheme is pegged at a minimum of 30 working days to a maximum period of 12 months with offer of interest rates on short and medium term basis.
It claims to be involved in trading, general merchandise supply, oil and gas, transportation, import, export and general contract.
The commission had established that the company’s activities also constituted an infraction of the Investments and Securities Act (ISA), 2007.
The statement explained that the SEC is empowered by Section 13 of the Investment & Securities Act 2007 to shutdown any company carrying out capital market activities without due registration.
“Nigerian laws provide that business activities in the country have to be regulated, in this case SEC is supposed to regulate them,” the commission explained further, adding that the closure was to end unlawful activities of the company against unsuspecting investors.
The commission urged investors to ensure they only deal with fund managers that are registered with the Commission, adding that the company is not licensed to carry out investments business of any type and as such its operations are illegal.
The SEC therefore advises the public to exercise due diligence and caution in the course of making investment decisions adding that valid licence of lawful operators could be obtained on the commission’s website by members of the public to confirm the licences of firms with which they intend to carry out investment activities.

Photo News: From left to right: Zonal Head Securities and Exchange Commission (SEC), Kano Zonal Office, Danladi Mohammed, Managing Director, Dantata Success and Profitable Company, Kano, Alhaji Lawan Sani and DSP Mukthar Hussaini Aliyu of the SEC Police Unit, during the Enforcement action on Dantata Success and Profitable Company, Kano, Wednesday.

COMMENTS

WORDPRESS: 0
DISQUS: 0