THE Securities and Exchange Commission (SEC) among other propositions is considering reducing its renewal fees from 25 per cent of the existing registration fees to 5 per cent, a difference of 80 per cent from the initial charge.
This according to the commission, was justified going by the appeal from Stakeholders and in line with the regulatory mandate of fostering development in the market. The Commission noted the need for the reduction of its renewal fees from 25 per cent to 5 per cent to serve as a relief to existing Capital Market Operators (CMOs) and not to further stiffen the market.
The renewal fees for CMOs shall be payable to the Commission every year not later than January 31st. This the commission considered as a major amendment among others.
For the sundry amendment, the commission also proposed amendment to Rule 398 (3) (x)- Rules Relating to Share Buy-back Full text of the Existing Rule, that every company acquiring its own shares shall comply with.
The shares bought back shall be cancelled in accordance with the procedure set out in CAMA. Proposed amendment states that the shares bought back may be cancelled or held as treasury shares subject to the conditions set out in CAMA 2020.
The justification behind this amendment according to the commission will bring the existing rule in consonance with the provisions of CAMA 2020 which allows for shares bought back to be held by the company as treasury shares
However, few days ago, the commission shut the offices of some companies alleged to have operated on false pretense of misleading the public to fund their private ventures.
According to the document made available on the commission’s site yesterday, these companies include Oxford International Group/Oxford Commercial Services, Farmforte agro-allied solutions limited/Agropartnerships and Vektr capital investment/vektr Enterprise.
The Commission hereby notifies the investing public that none of these entities is registered by the SEC and the Investment Schemes promoted by them are also not authorized by the SEC.
The Commission warns that it is unlawful for any private enterprise whether incorporated as a company or not, to solicit funds from the public by whatever means to fund its private ventures in contravention of the Investments and Securities Act, 2007.
The management specifically warned the general public by this notice and strongly advised to always confirm from the Commission whether an entity providing investment services has been duly registered and investment scheme authorized by the Commission.
“Any member of the investing public dealing with this entity is doing so at his/her own risk” the commission says.
