By Chinwendu Obienyi
The Securities and Exchange Commission (SEC) at the weekend responded to claims that investors in the Nigerian capital market were defrauded by asset managers at the Nigerian Stock Exchange (NSE).
In a statement released on SEC’s website recently, the Commission promised to do everything within its reach to ensure investors and their investment are well protected.
“The attention of the Securities and Exchange Commission has been drawn to various publications in the National dailies alleging that investors in the Nigerian capital market have recently been defrauded by a licensed member of the Nigerian Stock Exchange (NSE).
“In response to these publications, the Commission states that as the apex regulatory authority of the Nigerian capital market, it would do everything within the confines of the Investments and Securities Act (ISA) 2007 and the Rules and Regulations made pursuant to the Act, to ensure the protection of investors and their investments in the market”, it said.
The statement added, “The Commission has established a robust framework for investigating complaints received from investors and it will continue to maintain zero tolerance to any form of infraction in the market. Furthermore, the Commission adopts a risk-based monitoring and supervision of operators and institutions in the market to forestall potential systemic collapses”
According to the statement, “SEC imposes stiff sanctions on erring operators to serve as a deterrent within the limits permitted by law and the Commission has developed a thriving partnership with the Nigerian Police Force (NPF) and the Economic and Financial Crimes Commission (EFCC) to prosecute these matters”.
The Commission then assured all investors and stakeholders of its commitment to ensure the continued development and stability of the capital market, noting that it will leave no stone unturned to recover investors monies which had been illegally converted by market operators.