Foreign Stocks: Why SEC Banned Some Investment Technology Platforms

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The Securities Exchange Commission (SEC) has made it a point of determination to remove any unapproved securities or stocks that may be detrimental to Nigerians. Only approved securities can be sold to Nigerians.

The commission issued a circular directing investment tech platforms such as Bamboo, Chaka, and Trove to desist from offering foreign stocks to the Nigerian public.

The statement said in part that “only foreign securities listed on any Exchange registered in Nigeria may be issued, sold, or offered for sale or subscription to the Nigerian public.” The statement urged CMOs working with these online platforms to desist from doing so from now on.

SEC Nigeria has enough power to do what it is doing because of the vested legal powers it has as a government-owned platform. That is why only approved securities can be sold to Nigerians from now on.

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Foreign Stocks

From now on, foreign stocks like Tesla Inc., Apple, Amazon, Google, and others that are currently not listed within Nigerian jurisdiction should no longer be offered to the people of Nigeria who live in Nigeria. Both residents and businesses are not allowed to buy these.

In recent times, young Nigerians have been leveraging this means of investing. They value them so much because it means the diversification of portfolios. Now, these young investors will lose the opportunities they once had. Remember that recently, the federal government also issued a directive prohibiting banks from facilitating cryptocurrency trade in Nigeria.

Although the latest move by SEC to shut down the foreign stocks portfolios in Nigeria has not gone into effect, SEC has been raising concerns for some time now, with its voice gradually growing. The full information regarding the next moves has not yet been released by SEC.

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