The Securities and Exchange Commission (SEC) has reinforced its commitment to safeguarding investors in Nigeria’s capital market by intensifying efforts to eliminate fraudulent activities.
The Commission has vowed to impose strict penalties on unscrupulous operators as part of its broader regulatory crackdown.
Speaking on the initiative, the Director-General of SEC, Dr. Emomotimi Agama, stressed the Commission’s zero-tolerance stance on market fraud, warning that violators will face severe consequences.
“So, clearly for us, it is getting people to understand that there is no hiding place anymore for anybody that has the intention to defraud Nigerians and to defraud anybody that is investing in this market,” Dr. Agama stated.
He emphasized that the Investments and Securities Act (ISA) 2007 serves as the legal framework guiding securities regulation in Nigeria, ensuring that market operators meet ethical standards.
Central to this regulatory framework is the “fit and proper person’s test,” which requires operators to adhere to stringent criteria to retain their licenses.
“This is because the very ethics of regulating or registering a securities market operator is in the principle of the fit and proper person’s test,” he explained.
Dr. Agama disclosed that the SEC has already begun enforcing its policies, evident in recent license revocations, operator suspensions, and crackdowns on unregistered entities.