SEC Warns Against Trading Stocks Via Bamboo, Trove, Others

Image

By Dipo Olowookere

The Securities and Exchange Commission (SEC) has warned members of the public, especially investors in Nigeria, against buying or selling stocks through online investment and trading platforms like Bamboo, Chaka, Trove, amongst others.

In a statement issued on Thursday, April 8, 2021, the agency explained that it gave out this warning because these platforms are not authorised to trade stocks in Nigeria.

The apex regulator in the Nigerian capital market, therefore, cautioned licenced capital market operators (CMOs) against associating with these platforms because they could be sanctioned.

In the notice, SEC described the activities of the affected organisations as illegal because they have not been authorised to trade shares, either foreign or local.

The likes of Bamboo, Trove, Chaka allows residents of Nigeria to trade foreign stocks, especially those listed in the United States, through their trading platforms.

But SEC said if they must carry out this function, their organisations must be duly registered as stipulated in Sections 67-70 of the Investments and Securities Act (ISA), 2007 and Rules 414 & 415 of the SEC Rules and Regulations.

“The attention of the Securities and Exchange Commission (the Commission) has been drawn to the existence of several providers of online investment and trading platforms which purportedly facilitate direct access of the investing public in the Federal Republic of Nigeria to securities of foreign companies listed on Securities Exchanges registered in other jurisdictions.

“These platforms also claim to be operating in partnership with Capital Market operators (CMOs) registered with the commission,” a part of the statement said.

“The commission categorically states that by the provisions of Sections 67-70 of the Investments and Securities Act (ISA), 2007 and Rules 414 & 415 of the SEC Rules and Regulations, only foreign securities listed on any Exchange registered in Nigeria may be issued, sold or offered for sale or subscription to the Nigerian public.

“Accordingly, CMOs who work in concert with the referenced online platforms are hereby notified of the commission’s position and advised to desist henceforth,” it added.

“The commission enjoins the investing public to seek clarification as may be required via its established channels of communication on investment products advertised through conventional or online mediums,” it concluded.

Recall that last December, the Investments and Securities Tribunal (IST) prohibited Chaka from using its platform to trade stocks for investors in the Nigerian capital market until it is permitted to do so.

The directive followed a suit filed by SEC, which said the organisation was not authorised to carry out such activities in the country because it was not licenced.

Share
Related Stories
Image
02-March-2024

CSCS, FrieslandCampina Lift NASD OTC Bourse by 0.31%

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange returned to the positive territory after it gained 0.31 per cent on Friday, March 1, thanks to the duo of Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc. CSCS Plc added 81 Kobo to its value to sell for N19.46 per unit compared with the preceding day’s N18.65 per unit, and FrieslandCampina improved by N1.15 to settle at N71.4o per share, in contrast to Thursday’s closing price of N70.25 per share. However, Aradel Holdings Plc continued its price depreciation yesterday as it shed N6.75 to sell at N2,395.00

Image
05-March-2024

Investors Mop up Nigerian Stocks on Economic Optimism

By Dipo Olowookere The Nigerian Exchange (NGX) Limited witnessed a 0.10 per cent growth on Monday amid optimism that the trip of President Bola Tinubu to Qatar over the weekend will yield positive results. At the Nigeria-Qatar Business and Investment Forum in Doha, Mr Tinubu assured Qatari investors that they would not face any bottleneck while attempting to repatriate their funds. This assurance was welcomed by stock investors, who saw light at the end of the tunnel for the nation’s economy, which is currently suffering because of the shortage in the supply of foreign exchange (FX) into the market. Since

Image
05-March-2024

Naira Value Improves at Official Market, Deflates at Parallel Market

By Adedapo Adesanya The Naira appreciated further against the greenback in the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the FX market on Monday, March 5 by N14.06 or 0.9 per cent to trade at N1,534.19/$1 compared with last Friday’s value of N1,548.25/$1. The improvement in the value of the domestic currency happened as the forex market attempts to find stability after months of turbulence due to a shortfall in the supply of Dollars into the system. Yesterday, the value of forex trades depreciated by 39.7 per cent or $117.37 million to $178.63 million from the $296.00 million recorded

Image
05-March-2024

Nigeria’s Economic Outlook is Challenging—IMF Declares

By Aduragbemi Omiyale The International Monetary Fund (IMF) has alerted that tough times await Nigerians, though it retained its gross domestic product (GDP) growth forecast for 2024 at 3.2 per cent. In a statement on the conclusion of the IMF Staff 2024 Article IV Mission to Nigeria, the global lender said the administration of President Bola Tinubu “inherited a difficult economic situation marked by low growth, low revenue collection, accelerating inflation, and external imbalances built up over years.” However, it praised the government’s approval of an effective and well-targeted social protection system, including the release of grains, seeds, and fertilizers,

More Stories
Image
12-November-2020

Kaduna Mandates Adults to Pay N1000 Development Levy

By Modupe Gbadeyanka From 2021, every adult living in Kaduna State would be required to pay a compulsory N1,000 yearly as development levy. The Executive Chairman of the Kaduna State Internal Revenue Service (KADIRS), Mr Zaid Abubakar, confirmed this in a notice posted on the official Facebook page of the agency, which is linked to the official website of the tax body, http://www.kadirs.kdsg.gov.ng/news.php. Mr Abubakar noted that the payment of the levy was in line with Section 9 (2) of the Kaduna State Tax Codification and Consolidation Law, 2020. The money would be used for the development of the state

Image
08-January-2020

10 Stockbroking Firms Trade 85.5bn Shares Worth N1.4trn in 2019

By Modupe Gbadeyanka A total of 85.5 billion shares worth N1.4 trillion were transacted by 10 stockbroking companies in Nigeria last year, data from the Nigerian Stock Exchange (NSE) has indicated. The equities were traded by the prominent brokerage firms from January to December 2019, with Stanbic IBTC Stockbrokers Limited emerging as the most active both by volume and value of the transactions. The league of 10 biggest brokers on NSE contributed 53.84 percent to the total volume of shares transacted at the nation’s bourse in the year under review and 70.14 percent of the total value. An analysis by

Image
28-August-2023

Flood: Apprehension as Cameroon Plans to Reopen Lagdo Dam

By Adedapo Adesanya The Ministry of Foreign Affairs has alerted the National Emergency Management Agency (NEMA) of an impending flooding along the River Benue basin. This was communicated through a letter signed by Mr Umar Salisu, the Ministry’s Director of African Affairs, dated August 21, announcing that the Cameroonian government plans to “open the flood gates of the Lagdo Dam on the Benue River in days ahead”. It noted that this is due to the heavy rainfall “around the dam catchment area in Northern Cameroon”. The statement added that “According to the note, it is pertinent to note that when

Image
16-April-2017

Hyundai Cuts Prices of Nigeria-Made Vehicles

The prices of locally made vehicles in the B-segment have been reduced by Hyundai Motors Nigeria Limited. This, the auto firm said, was done to increase the number of brand new small vehicles on the country’s roads. “Stallion Hyundai Motors Nigeria is determined to cushion imminent scarcity of functional B segment cars and mitigate price increase of cars owing to last year’s prohibition of used vehicle import through the land borders. “The offer also gives customers to buy the desired Hyundai models during this Easter festive season,” Hyundai Motors said in a statement issued by its spokesman, Mr Santhosh Nair.

Image
25-August-2021

NDA Attack Will End Criminality in Nigeria—Buhari

By Ashemiriogwa Emmanuel Following the fresh attack launched by some terrorists usually called bandits by on the Nigerian Defence Academy (NDA) on Tuesday, President Mohammed Buhari has said that the incident will lead to a decisive end to criminality in the country. The President, in a statement issued on Wednesday by his Special Adviser on Media and Publicity, Mr Femi Adesina, emphasised that the NDA attack would accelerate the total uprooting of evil in the state, which members of the Armed Forces of Nigeria (AFN) are determined to achieve in the shortest possible time. In the notice, President Buhari said,

Image
03-August-2018

Freshworks Secures $100m Investment to Propel Growth

By Dipo Olowookere Global leader in customer engagement software, Freshworks, has secured $100 million in financing and has hired former AppDynamics Vice President of Finance & Treasury Suresh Seshadri as its chief financial officer. The latest round of funding is co-led by Accel and Sequoia, with participation from CapitalG, bringing Freshworks’ total amount of capital raised to $250 million. The cash infusion will be used to further expand Freshworks’ worldwide expansion as well as continued investment in its integrated SaaS platform. Freshworks provides organizations of all sizes with SaaS solutions that make it easy for customer support, sales and marketing

Image
21-April-2020

Businesses Record 22 Million Cyber Attacks in One Week

By Adedapo Adesanya Hackers attacked businesses more than 22 million times last week worldwide, an expert report compiled and analyzed by Atlas Virtual Private Network (VPN), has stated. Atlas VPN extracted and organized the data acquired from a cybersecurity giant Akamai, a firm that provides real-time data on cyberattacks that their corporate customers are under. The cybersecurity company catches a significant amount of attacks globally since they are one of the largest distributed computing platforms in the world. They are responsible for serving between 15 to 30 percent of web traffic globally. It was stated in the report that on

Image
12-January-2022

Portfolio Investors Will Dump Naira Assets in 2022 Unless…LCCI

By Adedapo Adesanya The Lagos Chamber of Commerce and Industry (LCCI) has projected that Naira assets will become unattractive in 2022 and will result in portfolio investors dumping them. President of the chamber, Mr Michael Olawale-Cole, while speaking on Tuesday at the organisation’s first press conference for the year in Lagos, stated that investors will have a change of mind if there is an improvement in the yield environment and the issues in the foreign exchange (FX) ecosystem are addressed. He, therefore, called on the monetary authorities to liberalize the FX market by unifying the multiple forex rates and ensuring

Ad
Ad
Recent Stories
Image
05-March-2024

Petrol, Electricity Subsidies Will Gulp 3% of Nigeria’s GDP—IMF

By Adedapo Adesanya The International Monetary Fund (IMF) has warned the Nigerian government the payment of subsidies on petrol and electricity could take up to 3 per cent of the country’s gross domestic product (GDP) in 2024. The IMF stated this in a statement released on Monday on the completion of its 2024 Article IV Mission to Nigeria. The lender said that the recent improvements in revenue collection and oil production are encouraging, as “low revenue mobilization constrains the government’s ability to respond to shocks and to promote long-term development.” But it emphasised that, “The capping of fuel pump prices

Image
05-March-2024

Deel Buys 100% Stake in African HR Solution Company PaySpace

By Adedapo Adesanya Global human resources company, Deel, has announced the acquisition of African-based payroll and HR solution company, PaySpace, for an undisclosed amount, in one of its largest acquisitions to date. By acquiring PaySpace, Deel will become the first global payroll and Employer of Record (EOR) with its full-stack payroll engine localized in 50 countries and integrated into its offering. PaySpace’s proprietary technology is a cloud-native framework built as a single engine. Its platform allows for easy configuration to add additional countries through localization. These localization projects normally take years to complete, but with PaySpace’s innovative technology, it can

Image
05-March-2024

Emotions Pour as Dignitaries Eulogise Late Herbert Wigwe

By Adedapo Adesanya  It was an emotional rollercoaster at the tribute event held on Monday night to celebrate the late group chief executive of Access Holdings Plc, Mr Herbert Wigwe. Dignitaries from government, corporate organisations, and royalty paid tribute to the late titan who died alongside his wife, son, and a former group chairman of the Nigerian Exchange (NGX) Group Plc, Mr Abimbola Ogunbajo, on February 9 in the United States. The event which was monitored by Business Post was divided into six segments – Young Hebert, the banker, the entrepreneur, the CEO, the builder and the ambassador. These personalities

Image
05-March-2024

Nigeria’s Economic Outlook is Challenging—IMF Declares

By Aduragbemi Omiyale The International Monetary Fund (IMF) has alerted that tough times await Nigerians, though it retained its gross domestic product (GDP) growth forecast for 2024 at 3.2 per cent. In a statement on the conclusion of the IMF Staff 2024 Article IV Mission to Nigeria, the global lender said the administration of President Bola Tinubu “inherited a difficult economic situation marked by low growth, low revenue collection, accelerating inflation, and external imbalances built up over years.” However, it praised the government’s approval of an effective and well-targeted social protection system, including the release of grains, seeds, and fertilizers,

Image
05-March-2024

Banks Involved in 70% of Economic Crimes in Nigeria—EFCC

By Aduragbemi Omiyale Nearly 70 per cent of financial crimes in Nigeria have the involvement of banks, the Economic and Financial Crimes Commission (EFCC) has claimed. “Broadly speaking, banking fraud in Nigeria is both inside and outside related. “The inside related fraud comprises outright selling of customers’ deposits, authorising loan facilities, forgery and several other kinds of unhealthy and criminal practices,” the chairman of EFCC, Mr Ola Olukoyede, said while speaking at the Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria held in Abuja. The EFCC boss, represented by the agency’s Director

Image
05-March-2024

Nigerian Air Force Airstrikes Hit Two Illegal Refineries in Rivers

By Adedapo Adesanya The Nigerian Air Force component of Operation Delta Safe, through airstrikes destroyed two illegal oil refining sites in Krakama and Temakiri, Degema Local Government Area of Rivers State, in continuation of efforts to stamp out the activities of crude oil thieves and oil pipeline vandals in the country. This was disclosed by the Director of Public Relations and Information, Nigerian Air Force, Mr Edward Gabkwet, an Air Vice Marshal, saying the illegal oil refining sites were observed actively operating with Cotonou boats sighted nearby with the probable intent to illegally siphon crude oil from the sites. Mr

Image
05-March-2024

NGX Remains Catalyst for Economic Growth—Chiemeka

By Aduragbemi Omiyale The acting chief executive of the Nigerian Exchange (NGX) Limited, Mr Jude Chiemeka, has described the bourse as a catalyst for economic growth and development. He said this at the listing of 7.5 billion ordinary shares of Transcorp Power Plc at N240 per unit at the exchange on Monday. The energy firm raised the market capitalisation of the trading platform by N1.8 trillion yesterday. According to him, the inclusion of Transcorp Power into the NGX, the first listing of the year, underscored the pivotal role the bourse plays in shaping Nigeria’s economic landscape. He added that NGX

Image
05-March-2024

Dangote Renames Lagos Refinery Road After Herbert Wigwe

By Modupe Gbadeyanka The road to the Dangote Refinery in the Lekki area of Lagos State has been renamed after the late group chief executive of Access Holdings Plc, Mr Herbert Wigwe. This development was announced on Monday night by the owner of the oil facility, Mr Aliko Dangote, during the Celebrating Herbert Wigwe’s Professional Legacy, who said this gesture was to immortalise his friend. The Nigerian billionaire businessman and the richest black man on earth, in an emotional tribute to the late banker, who died in a helicopter crash in the United States on February 9, 2024, along with

Image
05-March-2024

Investors of Unlisted Securities Lose N43bn

By Adedapo Adesanya It was a bad day for investors of unlisted securities in Nigeria as the NASD Over-the-Counter (OTC) Securities Exchange ended the first trading session of the week on a negative note with a 3.11 per cent loss triggered by four stocks on the platform. The culprits were UBN Property Plc, Aradel Holdings Plc, Central Securities Clearing System Plc, and Resourcery Plc. They were under selling pressure during the trading session. This resultantly trimmed N43 billion from the market capitalisation of the bourse to N1.449 trillion from N1.542 trillion, as the NASD Unlisted Security Index (NSI) dropped 35.53

Image
05-March-2024

Naira Value Improves at Official Market, Deflates at Parallel Market

By Adedapo Adesanya The Naira appreciated further against the greenback in the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the FX market on Monday, March 5 by N14.06 or 0.9 per cent to trade at N1,534.19/$1 compared with last Friday’s value of N1,548.25/$1. The improvement in the value of the domestic currency happened as the forex market attempts to find stability after months of turbulence due to a shortfall in the supply of Dollars into the system. Yesterday, the value of forex trades depreciated by 39.7 per cent or $117.37 million to $178.63 million from the $296.00 million recorded