Home Latest Insights | News SEC Regulates Capital Market And Not CAC

SEC Regulates Capital Market And Not CAC

SEC Regulates Capital Market And Not CAC
SEC Nigeria

Most times when i advise some clients to make sure they carry out due diligence before investing on any platform they are quick to point out that they have done their homework and that they have checked if the company they want to invest in is registered with the corporate affairs commission (CAC) and it is registered, therefore the company been registered with the CAC must be genuine.

This line of thought that every company registered with the corporate affairs commission is genuine and legit is marred with ignorance.

For the record, not every company or business registered with the CAC is genuine; some fraudsters register their businesses or companies with the corporate affairs commission too.

Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.

Tekedia AI in Business Masterclass opens registrations here.

Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.

It should be noted that although CAC is expected to make sure that every business or company registered with them is legit, their main function as a governmental body as set out in section 7 of the Companies and Allied Matters Act, includes: administering the Act, the regulation and supervision of the formation, incorporation, management and winding up of companies.

But when it involves investment companies, that the company is registered with the CAC does not prove the authenticity of the company. CAC documents and certificates that the company holds mean nothing when it comes to proving their authenticity.

It is the Securities and Exchange Commission (SEC) that is a body that regulates all capital market operators including investment platforms. The Securities and Exchange Commission (SEC), is the Apex Regulator of the Nigeria Capital Market and they are responsible for developing and regulating the capital market.

Some of the functions of the Security and Exchange Commission include;

To Develop and Regulate a Capital Market that is Dynamic, Fair, Transparent and Efficient, to Contribute to the Nation’s Economic Development.

The Securities and Exchange Commission is mandated to Regulate and Develop the Nigerian Capital Market.

The Securities and Exchange Commission oversees securities exchanges, securities brokers and dealers, investment advisors, and mutual funds in an effort to promote fair dealing, the disclosure of important market information, and to prevent fraud.

If you want to confirm or verify if an investment platform is genuine, first you will need to confirm if they are registered with SEC or licensed by SEC to carry out the business of crowdfunding, capital investment, capital market, etc, SEC is the right body to approach, you can go to their website and you will see the list of all licensed capital market operators.

The SEC maintains surveillance over licensed capital market operators and investment platforms with the mandate of ensuring orderly and equitable dealings and protecting the market against fraudulent activities.

You can always contact them or write to them for your inquiries.

Their Contact details are:

SEC TOWERS,

Plot 272, Samuel Adesujo Ademulegun Street, Central Business District

P.M.B:315, Garki, Abuja

+234 (0) 94621100; +234 (0) 94621168

Email: [email protected]

Website: sec.gov.ng

No posts to display

Post Comment

Please enter your comment!
Please enter your name here