The Investments and Securities Tribunal Restrains Unregistered Fintech Company From Stock Trading

Proshare

Saturday, December 19, 2020   /02:33 PM / By SEC Nigeria/ Header Image Credit:PNG Key


The Investments and Securities Tribunal, (IST) on Thursday 17th December 2020, made interim Orders restraining a Fintech company, Chaka Technologies Limited, and its promoters from advertising or offering for sale shares, stock or other securities of companies or other entities.

 

The interim Orders, which apply to all Chaka platforms, were granted pursuant to an application by the Securities and Exchange Commission. In the application, the Commission - through its solicitor, Dr. Chuka Agbu SAN - informed the Tribunal that the Defendants were engaged in investment activities, including providing a platform for the purchase of shares in foreign companies such as Google, Amazon and Alibaba.

 

The Commission also stated that the said activities were carried out by the Defendants outside the regulatory purview of the Commission and without requisite registration, as stipulated by the Investment and Securities Act 2007. As disclosed in the processes filed by the Commission, the objective of the proceedings is to ensure that all investment activities and market players are duly regulated by the Commission, in line with the requirements of the law.

 

The proceedings came on the heels of the Commission's avowed intention to encourage innovation within the market space, whilst also ensuring that all market activities are brought within regulatory purview and conducted within the ambit of the law and extant regulations. The Commission is concerned that without proper regulation, the genuine aspirations of market innovators and investors could be subverted through the activities of unscrupulous actors who would try to exploit the growing popularity of Fintech investment options, to the detriment of the investing public.

 

Further proceedings before the Tribunal have been adjourned to January 15, 2021.


Proshare Nigeria Pvt. Ltd.


Related News

  1. SEC Nigeria, With the support of FSD Africa, Begins Master Plan Review
  2. SEC Requests CMOs to Disclose Security Dealings of 500,000 Units Within 24hrs of Activity
  3. SEC Urges Collaboration on Commodities Trading Ecosystem
  4. SEC Proposes Amendment to Its Rule on Renewal of Registration by CMOs
  5. Governments Can Unlock Potentials Through Privatisation - SEC
  6. SEC Issues Pre-Notice on Withdrawal of Certificates of Registration of 157 Inactive CMOs
  7. SEC Extends Deadline to File Quarterly Financial Statements for The Period Ending Sept 30, 2020
  8. SEC to Discontinue the Practice of Issuing Prior Approval for Audited Accounts of CIS
  9. SEC Issues Fresh Circular on the Registration of CMOs
  10. SEC Sets January 2021 for Implementation of Corporate Governance Guidelines
  11. Nigeria Commemorates World Investor Week
  12. SEC Nigeria Corporate Governance Guideline and Revised Form 01
  13. NSE Enhances Its Fixed Income Securities Market Segment and Revises Its Trading Fee
  14. HM Zainab Shamsuna Ahmed Urges IST to Discharge Duties Diligently
  15. SEC Issues Guidance on The Implementation of Sections 60 - 63 of The ISA 2007
  16. SEC Proposes Rules on Collateral Management Company, Crowdfunding and Other Sundry Amendments

 Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP