Tech Regulations & Govt | |
Tech Regulations & Govt | |
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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.
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