The Securities and Exchange Commission (SEC) in its avowed commitment to restore investor confidence, enhance market integrity and protect everyday investor, is taking two hundred and sixty (260) entities and individuals to the Investments and Securities Tribunal (IST) for alleged violation of the Investments and Securities Act (ISA), 2007. These entities and individuals including banks and other capital market operators are alleged to have been involved in price fixing, share price manipulation, fraud, and insider trading. These activities are contrary to the provisions of the Act.

 

The ISA 2007 prohibits the employment of any device, scheme or artifice that would operate as a fraud or deceit on any person in connection with the purchase or sale of securities. Many of the respondents were alledgedly engaged in such deceptive and manipulative activities.

 

Several entities and individuals that are being proceeded against have allegedly engaged in false trading which is prohibited by the ISA. False trading is where an individual or entity engages in activities that may create a false or misleading appearance of activity in any securities.

 

Another alleged violation by these entities and individuals was the purchase or sale of securities that did not involve a change in the beneficial ownership of the securities and transactions conducted to maintain, inflate, depress or fluctuate the price of a security. Actions were also filed against some individuals who were alleged to have engaged in insider trading by using unpublished price sensitive information in relation to purchase or sale of securities.

 

The Commission is seeking injunctions, monetary penalties and the disgorgement of profits gained in violation of the ISA. The Commission appreciates the cooperation of all who aided the investigation and particularly the assistance of the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC). The benefits of collaborating have meant that the Commission was able to achieve much more with the very little resources that it had. Between the SEC and its partners we want to ensure that regulation and enforcement have a crowding out effect on criminal activites in the capital market.

 

Finally the Commission would like to emphasize that a credible enforcement programme is a key component for ensuring the fulfillment of its critical mandate of protecting the everyday investors in the Nigerian capital market.

 

Lanre Oloyi

Assistant Director/ Head Media

Securities and Exchange Commission (SEC)

27/07/2010.