The Securities and Exchange Commission (SEC Nigeria), on Wednesday warned that transacting in the nation’s capital market with unregistered and unregulated entities exposes investors to financial risks.
Such, it noted, include fraud and the potential loss of investment and expressed its committed to protecting investors in the Nigerian Capital Market while working diligently to curb scams and other fraudulent activities.
The commission issued the notice against the backdrop of a certain Marino FX Limited parading itself as SEC regulated entity, whereas it is not licensed by the commission to operate in any capacity within the nation’s capital market.
According to the notice by the SEC, Marino FX Limited ”as a SEC licensed cryptocurrency exchange is NOT registered or licensed by the SEC to operate in any capacity in the Nigerian capital market, including cryptocurrency exchanges.
“Any claim to the public by the company of its registration or license by the SEC is false and misleading,” the notice added, urging members of the public to inquire or “verify the status of any capital market operator, please contact the SEC via the following: +2342094621168-9, registration@sec.gov.ng, and https:/sec.gov.ng/cmos/.”
The statement recalled that just last week, a public hearing was held on the proposed Investments and Securities Bill (ISB) 2024 which proposes a penalty of N20m or 10 years imprisonment or both for Ponzi scheme operators.
The Director-General of SEC, Dr Emomotimi Agama while speaking at the event, said the bill also prescribes stringent jail terms and other stiff sanctions for the promoters of Ponzi schemes.
He said that SEC introduced an express prohibition of Ponzi/Pyramid Schemes and other illegal investment schemes to ensure that illegal fund managers were not allowed to fleece unsuspecting Nigerians of their funds.
Agama said the commission had observed areas which required review in the ISB 2007 to strengthen existing provisions, remove ambiguities, introduce new provisions that would enhance the international competitiveness of the Nigerian capital market.
Agama said the move is aimed at repositioning the market to catalyse national economic transformation.
