A Federal High Court sitting in Ikoyi, Lagos, has ordered the winding up of an unregistered capital market firm found to be operating illegally within the state. The ruling comes as part of ongoing efforts by regulatory authorities to clamp down on fraudulent financial activities and protect investors in Nigeria’s capital markets.
Justice C.J. Aneke, who presided over the case, ruled in favour of the Securities and Exchange Commission (SEC) petition, emphasizing the firm’s failure to comply with mandatory registration and regulatory requirements. The court directed the immediate cessation of the firm’s operations and appointed a liquidator to oversee the winding-up process.
This judgment serves as a stern warning to other unlicensed entities engaged in financial services, reinforcing the SEC’s commitment to maintaining integrity and transparency within Nigeria’s capital market.
Officials from the SEC applauded the court’s decision, stressing that such measures are vital to safeguarding investor confidence and ensuring sustainable market growth. Investors are urged to always verify the credentials of firms before engaging in financial transactions.
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