SEC Reiterates Zero Tolerance for Fraudulent Practices

The Director-General of the Securities and Exchange Commission (SEC), Ms Arunma Oteh, has restated the commission’s zero tolerance for  fraudulent practice and violation of rules in the Nigerian capital market, saying violators will be dealt with appropriately.
Speaking with journalists in Abuja at the end of the third Capital Market Committee Retreat in Abuja at the weekend, Oteh said: “We have strengthened our regulation and enforcement of our rules. We believe in innovation and that transparency is key to the success of the market. In line with our zero tolerance posture, the commission will not relent in blacklisting companies that do not follow the rules of the market and punish any form of malpractices in the market.”
Speaking in the same vein, the Executive Commissioner, Legal and Enforcement, Mrs. Sa’adatu Bello, said SEC was putting a lot of efforts in ensuring that fraudulent operators in the market were flushed out.
She vowed that there was no hiding place for fraudsters in the market,
assuring investors of the safety of their investments.
“We have done so much on illegal operations and Ponzi schemes and we are making strides in that area. In the last two weeks, we have sealed up not less than four Ponzi schemes in Sokoto, Ibadan and Port Harcourt.  We have discovered that people use internet to float companies and get people to invest. There is no hiding place for anybody that wants to defraud   investors in the market. When we get such information, we freeze the bank account, prosecute them and give investors back their money,” she said.
Meanwhile, SEC will partner the International Finance Corporation (IFC) to develop a corporate governance score card for listed companies on the Nigerian Stock Exchange (NSE).
“One of the things we have done so far is that we have strengthened our corporate governance framework. We have a partnership with IFC where we are working on developing corporate governance scorecard which every company that is listed will need to respond to. So far, we have created a voluntary code where companies tell us the level of compliance of their own volitions and they will actually be scored at the level of their corporate governance,” Oteh said.

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