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Tag: SEC

  • SEC approves Access Holdings N351bn rights issue

    SEC approves Access Holdings N351bn rights issue

    The Securities and Exchange Commission (SEC) has approved the commencement of the N351 billion rights issue capital raising programme of Access Holdings Plc.

    A statement made available by the Holdings to newsmen on Sunday in Lagos confirmed this.

    The group said that the approval marked a significant milestone in its previously announced capital raising programme, which aimed to generate up to $1.5 billion.

    It also said that the rights issue was strategically structured to boost Access Holdings’ financial position and support ongoing working capital needs.

    According to the holdings, the programme will also provide funding for organic growth across its banking and non-banking subsidiaries.

    “The approved rights issue offers 17,772,612,811 ordinary shares of N0.50 each at a price of N19.75 per share.

    “The offer will be issued on the basis of one new ordinary share for every two existing ordinary shares held as of June 7, 2024,” it said.

    The lead issuing house for Access Holdings’ rights issue is Chapel Hill Denham Advisory Ltd., while Atlas Registrars Ltd. will serve as the Registrars to the offer.

    The offer will open on July 8 and close on Aug. 14.

    It noted that the rights circular would be distributed to shareholders by Atlas Registrars Ltd., and application forms would also be available on its various websites.

    The holding company advised its shareholders to contact their stockbrokers for more details about the offer.

    Access Holdings said that it remained committed to its strategic vision of expanding its footprint and delivering exceptional value to all its stakeholders.

    It noted that the successful execution of the rights Issue would further solidify the group’s position as a leading financial services provider in Africa and beyond.

  • SEC Director reveals how Binance breached Nigerian laws

    SEC Director reveals how Binance breached Nigerian laws

    A Director with the Security and Exchange Commission (SEC), Abdulkadir Abbas, on Friday, told a Federal High Court, Abuja how Binance Holdings Ltd breached the Nigerian law to operate naira peer-to-peer services in exchange of crypto assets.

    Abbas, the Director of Registration, Exchanges and Market Infrastructure Department at SEC, disclosed this while testifying before Justice Emeka Nwite in the trial of Binance and two of its officials on a charge bordering on money laundering.

    Abbas, the 1st prosecution witness (PW1), said that due to the large number of Nigerian users, who were leveraging on the model, it adversely affected the official exchange rate.

    “As a matter of fact, the Binance platform became a reference point for determining the exchange rate,” he added.

    The Economic and Financial Crimes Commission (EFCC) had filed a 5-count charge against Binance and Tigran Gambaryan as 1st and 2nd defendants, while listing Nadeem Anjarwalla as being at large.

    Led in evidence by prosecuting lawyer, Ekele Iheanacho, Abbas said the operations of company negatively impacted Nigeria’s financial system.

    The director, who is the 1st prosecution witness (PW1), told the court that not only did Binance operate in Nigeria illegally, its mode of operation circumvented the normal currency trading route put in place by regulators.

    The witness said he met Gambaryan once during a meeting at the office of the National Security Adviser (NSA).

    Abbas said Binance and its officials were invited by the NSA to the meeting to discuss its operations and the impact on the Nigerian economy.

    “At the meeting, it was clearly observed that the 1st defendant (Binance)’s mode of operation is against the provision of the Investment and Securities Act, 2007

    “Apart from not being registered in Nigeria and making public solicitation without authorisation, the 1st defendant operates a naira peer-to-peer (P2P) in exchange of crypto assets.

    “The naira P2P being deployed in the transaction, circumvent the normal trading route.

    “This is because the Central Bank of Nigeria (CBN) has banned banks from providing certain settlement platforms for crypto exchange.

    “As a result of the naira P2P deployed by Binance, and coupled with the large number of Nigerian users, who were leveraging on that model, it adversely affected the official exchange rate,” he said.

    According to him, the naira P2P model created uncertainty and high level of volatility in the exchange rate as Nigerian users trade arbitrarily on the platform, thereby impacting negatively on financial system stability.

    “The naira P2P rate quoted on Binance’s platform, is not referencing any official rate and its continuous operation affects the value of our naira.

    “This was one of the serious concerns raised at the meeting we had at the office of the NSA,” the PW1 said

    He added that the rate at which naira was being sold on Binance’s platform had no relationship with the official exchange rate.

    Abbas said the rate on Binance’s platform was not driven by any fundamentals, adding that it got to a stage where the value of the naira was determined based on the rate quoted on Binance’s platform.

    He said the rate had no correlation or relationship with the official rate.

    He said by operating its platform, which was not registered or regulated by the SEC in Nigeria, Binance was in breach of the extant provisions of the Investment and Securities Act, 2007

    “In addition, by making public solicitation to Nigerians without due authorisation by the SEC, the 1st defendant violated the Investment and Security Act,” the witness said.

    At the conclusion of his evidence-in-chief, lawyer to Binance, Babatunde Fagbohunlu, SAN, said he needed to retrieved some documents from the court with which he planned to cross examine the witness.

    Fagbohunlu said he submitted an application to that effect earlier in the day, which was not yet approved.

    He sought a short stand down to enable him confirm if his application was approved and if the documents could be made available to him.

    Justice Emeka Nwite noted that since his application was filed today, it might be difficult to have it approved if the case was stood down.

    Justice Nwite elected to adjourn till May 23 at 12 noon for cross examination.

    Anjarwalla, who was in lawful custody with Gambaryan, escaped and fled the country on March 22.

  • Tinubu seeks confirmation of 4 board members of SEC

    Tinubu seeks confirmation of 4 board members of SEC

    President Bola Tinubu has asked the Senate to screen and confirm four persons appointed as board members of the Securities and Exchange Commission (SEC).

    The President’s request is contained in a letter read by the Senate President, Godswill Akpabio during the plenary on Wednesday.

    The appointed members of the SEC are; Emomotimi Agama, Frana Chukwuogor, Bola Ajomale and Samiya Hassan-Usman.

    While Agama was appointed as Director-General, Chukwuogor will serve as Executive Commissioner (Legal and Enforcement) of the Security and Exchange Commission.

    Ajomale was appointed as Executive Commissioner (Operations) while  Hassan-Usman was appointed  as Executive Commissioner (Corporate Services).

    In the letter,  the President explained that the appointment complied with the provisions of section of section (1) of the Investment and Security Act of 2007.

    The Senate President thereafter referred the request to the Senate Committee on Capital Markets to report back to the Senate within two weeks.

    In April, Tinubu had approved the appointment of seven persons as members of the SEC pending their confirmations by the  Senate.

    However, only four names were transmitted to the Senate for confirmation and Tinubu did not give reasons for not including the names of the other three professionals.

  • SEC supports mutual fund with N18.2bn – Official

    SEC supports mutual fund with N18.2bn – Official

    The Securities and Exchange Commission (SEC), supported growth of the Fund Management industry in 2023 with approvals for new mutual funds with N18.20 billion.

    According to SEC, the support also includes discretionary/non-discretionary investment products with N17.60 billion.

    The Director-General of the Commission, Mr Lamido Yuguda, said this while briefing newsmen at the post Capital Market Committee (CMC) meeting in Abuja on Friday.

    The Funds management is the overseeing and handling of a financial institution’s cash flow.

    The fund manager ensures that the maturity schedules of the deposits coincide with the demand for loans, the manager looks at both the liabilities and the assets that influence the bank’s ability to issue credit.

    Yuguda said that SEC approved five infrastructure fund shelf programmes totalling N1.5 trillion as a major step forward.

    He said the Commission amended rules governing digital assets and established a Digital Exchanges (DEX) Division dedicated to the supervision of all duly licenced digital asset platforms.

    ”On Market Supervision, the commission has intensified its supervisory efforts, focusing on fund managers and conducting inspections to address vulnerabilities and enhance stability.

    ”This has resulted in the implementation of a number of corrective measures designed to strengthen the overall health and stability of the fund management industry.

    ”Progress was reported on implementing Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulations and addressing deficiencies identified in the Financial Action Task Force (FATF) Mutual Evaluation Report.

    ”The Commission has been working with the nation’s regulatory and law enforcement agencies to ensure that Nigeria is taken off the FATF grey list,” he said.

    The director-general said that the Commission would inaugurate Securities Issuers Forum to discuss attracting more issuances to the market and a roundtable on leveraging crowdfunding to support MSMEs in May.

  • BREAKING: Tinubu makes fresh appointments into SEC board

    BREAKING: Tinubu makes fresh appointments into SEC board

    Nigeria’s President Bola Tinubu has made fresh appointments into the board of the Securities and Exchange Commission (SEC).

    TheNewsGuru.com (TNG) reports President Tinubu on Friday approved the appointment of Mr. Mairiga Aliyu Katuka as Chairman of SEC board.

    This is contained in a statement by Ajuri Ngelale, Special Adviser to the President on Media & Publicity.

    According to the statement, Mr. Emomotimi Agama was appointed as Director-General of SEC with Franca Chukwuogor as Executive Commissioner (Legal and Enforcement).

    Meanwhile, Mr. Bola Ajomale was appointed Executive Commissioner (Operations); Mrs. Samiya Hassan Usman, Executive Commissioner (Corporate Services); Mr. Lekan Belo, Non-Executive Commissioner, and Mr. Kasimu Garba Kurfi as Non-Executive Commissioner.

    “The President anticipates that all members of the Board of this critical commission will bring to bear their wealth of experience and competence in advancing the commission’s core mandate of developing and regulating a capital market that is dynamic, fair, transparent, and efficient, to bolster investor confidence and contribute immeasurably to the nation’s economic development,” the statement reads.

  • CBN lifts restrictions on crypto transactions after two years ban

    CBN lifts restrictions on crypto transactions after two years ban

    Central Bank of Nigeria (CBN) has legalized crypto currency by lifting the ban placed upon in 2021.

    The CBN has also released guidelines for banks and other financial institutions when operating with entities that provide crypto services.

    This directive is coming two years after crypto enthusiasts and companies yearned for the apex bank to lift the restriction.
    According to the circular sent to banks and other financial institutions, CBN said it lifted the ban because current global trends have shown that there’s a need to regulate the activities of crypto companies.

    It said Section 30 of the Money Laundering Act of 2022 now recognises crypto companies—which it calls virtual asset service providers (VASPs) — as financial companies.

    It also referred to the guidelines for crypto companies to operate in Nigeria released by the Nigerian Securities Exchange Commission (SEC) in 2022, as another reason why the restriction needed to be lifted.

    SEC regulations: Nigeria Crypto exchange CEOs to retire after 10 years
    While banks can now facilitate crypto transactions they are prohibited from trading, holding or transacting cryptocurrencies.

    What Nigerian banks are allowed to do with crypto companies
    Banks are now allowed to open bank accounts for crypto companies, also referred to as VASPs, provide them with designated settlement accounts, and act as channels for FX flows and trade.

    However, crypto companies that wish to use banks must have a licence issued to them by the SEC to operate.

    According to the SEC VASPs such as crypto exchanges will be required to pay a minimum paid-up capital of ₦500 million ($553,000) and must be registered duly with the CAC.

    Crypto companies that also wish to issue tokens must first submit a white paper to the SEC and wait 30 days to know if such tokens can be launched in Nigeria.

    Banks are also required to get the BVN of all the directors and owners of the crypto companies using its services. The guideline includes other stringent KYC measures before a VASP can have an account with a bank.

     

  • Popular Abuja investment firm shut down over illegal activities

    The Securities and Exchange Commission (SEC), has sealed the office of Ready Finance Investors Limited for engaging in illegal investment and other capital market activities.

    A statement issued by the Commission in Abuja, said the office located at AYA Memorial Plaza, Area 11, Garki, Abuja, was shut down for offering financial investment services suggestive of a covert ponzi scheme.

    The Commission said the move was part of efforts to rid the market of fraudulent capital market operators and create a veritable opportunity for legitimate businesses to thrive.

    It said the company enticed clients with promises of fixed returns on investment, contingent upon the specific package to which a client subscribed.

    According to the Commission, Ready Finance Investors Limited is not registered with SEC to conduct any activities in the capital market, rendering its operations and activities illegal.

    The Commission advised the public against dealing with the company, saying that any person who does that was doing so at his/her own risk.

    ”The matter is currently under the purview of law enforcement agencies for criminal investigation and subsequent prosecution.

    ”Other efforts by the Commission to curb the operations of illegal capital market are the amendment of its Anti Money Laundering and Countering the Financing of Terrorism Financing (AML/CFT/CPF) Regulation 2022.

    ”This is in line with the findings from the National Residual Risk Assessment (NRRA) exercise among others,” the Commission said.

  • Unclaimed dividends in capital market hits N190bn – SEC

    Unclaimed dividends in capital market hits N190bn – SEC

    The Securities and Exchange Commission (SEC) says that the unclaimed dividends figure in the nation’s capital market currently stands at N190 billion.

    Mr Lamido Yuguda, the Director-General of SEC, said this at the second post Capital Market Committee (CMC) media briefing in Abuja on Friday.

    He said the figure increased due to issues concerning identity management in the country.

    Yuguda also attributed the rising figure to multiple subscriptions by investors during banking consolidation and identity management.

    According to him, “we have legacy issues that have aggravated unclaimed dividends.”

    Yuguda, however, said the commission was working with the Nigeria Inter-Bank Settlement System (NIBSS), on the e-dividend portal.

    He added that the SEC was working with NIBSS to make changes to the electronic dividend portal currently going through some form of upgrading and repair.

    “We are working very hard to ensure we reduce the number of unclaimed dividends.

    “This is why we are upgrading the e-dividend portal with NIBSS to restore investors’ dividend and reduce unclaimed dividends.

    “We reiterate that every person, who has come to the capital market and invested money, should be able to get his dividends as and when due,” he said.

    On dollar denominated bonds listed on NGX, the director-general said it was not a problem as long as it was a corporate one.

    He said that the road ahead of the market was undeniably challenging but that the capital market would step forward in whatever way to lend its helping hand to the current economic reforms.

    “We introduced the Know Your Customer (KYC) requirement so that all information needed will be collated.

    “The market must make sacrifices to help drive the economic transformation that will change our nation’s fortunes for the better.

    “The Chairman informed the meeting that the Investments and Securities Bill (ISB) 2023 was under consideration by the 10th National Assembly.

    “The Bill aims to align regulations with the modern dynamics of the market and it is hoped that if passed into law, it will enable optimal contribution of the capital market to national development,” he said.

    The director-general said that market players were urged during the meeting to prioritise cyber-security measures to safeguard sensitive financial data and transactions.

    He lamented the trend where companies chose to de-list from the capital market.

    Also speaking, the Commissioner, Operations at SEC, Mr Dayo Obisan, said one of the major issues bedeviling the commission was for beneficiaries to get access to claim their dividends.

    “We keep putting our efforts to ensure that investors update their bank details, information and claim their dividends.

    “But we still have some of them who fill in details wrongly.

    “We at SEC are working very hard and we want to ensure bonuses get transferred to beneficiaries, capture everyone who is in the market so that our data is more robust.

    “We can be able to work effectively on reducing unclaimed dividends,” Obisan said.

  • BDC operators ask FG to stop Binance operations in Nigeria

    BDC operators ask FG to stop Binance operations in Nigeria

    Bureau De Change (BDC) operators in Nigeria have advised the Federal Government to use everything within its powers to stop the operation of Binance in the country.

    TheNewsGuru.com (TNG) reports the Association of Bureaux De Change Operators of Nigeria (ABCON) gave the advice in an interview on Tuesday in Lagos State.

    Binance is an online exchange, where users can trade cryptocurrencies. It supports hundreds of the most commonly traded cryptocurrencies.

    Speaking in the interview, Alhaji Aminu Gwadabe, President of ABCON averred that Binance is one of the many factors putting pressure on the naira.

    Recall that the Securities and Exchange Commission (SEC) of Nigeria had in June, issued a statement,  emphasising that Binance Nigeria was not registered or regulated by SEC, making its operations in Nigeria illegal.

    Gwadabe said, “If you know about Binance, you will know that Binance trading is becoming the anchorage of both the investors and exporters window and the parallel market, which is unfortunate.

    “So, we have to do something that can stop  Binance. It’s a competition; we need to ban Binance and the only way to do so is if you have liquidity.

    “As I speak, Binance is the most liquid market; they do 1.2 million transactions per second. So it’s a very liquid market but that is not a scary status, we can break it through our local content and peculiarities.”

    The ABCON president noted that optimism was giving way to pessimism in the present foreign exchange market situation.

    Gwadabe said that when pessimism overrode the psychology of the market, it would lead to loss of confidence by citizens, saying that was key in every currency of every nation.

    “So we are seeing a scenario where optimism is giving way to pessimism; investors are not coming, Nigerians don’t have confidence in the market and we have to look for external finances that are coming in as a quick fix.

    “There is a lot of pressure on the naira, from foreign exchange hoarding by the banks and oil companies.

    ”Is it Nigerians that want to pay school fees, round tripping, speculations, among others. All these galvanised to put pressure on the naira.

    “Spike and volatility did not start now, it’s something the present government inherited and has gone a long way in checkmating illegal behaviours around foreign exchange market and that is the objective of the unification,” he said.

    Gwadabe expressed hope that with petrol subsidy removal, the Central Bank of Nigeria would be able to see remittances from the Nigerian National Petroleum Corporation (NNPC) saying when subsidy began, the remittance to CBN from NNPC was zero.

    This, he said, would also allow the apex bank to have liquidity and inflows that would come in for them to be able to defend the naira.

    He said If we have a friendly, competitive and transparent system, more investors would want to come to the market.

    ”So, for us to succeed,  there must be liquidity. Countries that adopt floating exchange are countries that have heavy reserve and balance of payment to fallback on,” he said.

    The ABCON president urged  the National Assembly to come up with legislation that would protect investors in the market.

    “So, we need legislation now that the market is in tiers so that everybody will follow the law, know his obligation and be protected under the law. Once you meet up with your obligation, you are good to go,” he said.

    On revocation of licences of 2,698 BDCs by CBN, Gwadabe discredited the report saying, “as far as I’m concerned that list was not correct and still not confirmed.

    “The CBN has yet to come out with their comprehensive list. Yes, CBN is reviewing the BDC register with a view to reducing the number but as of now, there is no official list that proscribes or says these are the licensed or unlicensed.

    “So the statuesque remains the same,” he said.”

    The ABCON president said the association had engaged with CBN and had been advised to sensitise its members to know the conditions guiding their operations and their obligations which was to render returns to CBN.

    “We have a different department in CBN that supervises us that we need to be updating our records with them in terms of returns, change of address, change of directors and other issues involving technicality to render returns.

    “So, these are the things that we have appealed to CBN and because of our low business and no activity, a lot of our members have closed shop but that is not an excuse.

    “Nevertheless, the CBN has listened to our difficulty and has given us some months to go and work on these and improve on our returns,’’ he said.

    The CBN had in July, reduced the number of BDC dealers from 5,689 previously approved in 2022 to 2,991.

    The document titled ‘Approved BDCs’ revealed that the licences of 2,698 BDCs had been revoked.

  • SEC blacklists 6 online trading platforms

    SEC blacklists 6 online trading platforms

    The Securities and Exchange Commission (SEC), has blacklisted six online trading platforms in its latest crackdown on illegal and unregistered firms.

    In a circular by the Commission on Monday in Abuja, SEC said the platforms were purporting to offer investment and finance services and products.

    The circular said the platforms were not registered by the SEC, and the financial services offered by them were also not authorised.

    The Commission in the circular listed the companies to include, Prime Invest and “Primeinv.co, FXBoxed, New Finance LLC and New Fx Limited, Axi24, Evolve Consulting LCC and Trust Fund- Mining Global Pty Limited.

    “’The Commission’s attention has been drawn to the under listed e-commerce companies and their websites offering online trading platforms to the investing public.

    “Members of the public are advised to adopt the greatest diligence in making investment choices.

    ”In view of the above, the general public is hereby warned that any person dealing with the above mentioned e-commerce websites is doing so at his or her own risk,” the SEC said.

    The SEC had earlier warned against patronising a set of firms blacklisted by Italy’s securities regulator, Commissione Nazionale per le Soecieta’ e la Borsa (CONSOB).