September 26, 2023/NGX

Trading License Holders are reminded that cash payments for the purchase and sale of securities is strictly prohibited. The relevant provisions of the Rulebook of The Exchange, 2015 (Dealing Members’ Rules) have been reproduced below for ease of reference: 

Rule 11.13: Payments for Purchase or Sale of Securities 

(a) All payments for purchase of securities shall be made either by personal cheque, bank draft or electronic money transfer subject to the observance of the provisions of the Money Laundering Prohibition Act of 2012 as amended, and the Prevention of Terrorism Act, 2013 as amended. 

(b) All payments for sale of securities shall be made either by cheque, bank draft, electronic money Transfer in favour of the account holder in Central Securities and Clearing System Plc or in the name on the securities certificate evidencing the ownership of the securities. 

Rule 21.6: Mandatory Regulatory Requirements (Representative Offices) 

(k) There shall be no cash handling in a representative office except petty cash used for administrative expenses. All representative offices shall display in a conspicuous location in their offices, a message indicating that no cash would be accepted in respect of any transactions. 

(l) All transaction payments made by clients shall be by bank draft or cheque or bank transfer or any other means of payment accepted by the Central Bank of Nigeria (‘CBN’), and a copy of the evidence of such payment shall be sent to the Head or branch office within five (5) business days of the date of the transaction. 

Note that failure to comply with the provisions of the Rules cited above will attract regulatory sanctions as appropriate.