Saturday,December 19, 2020   /02:33 PM / By SEC Nigeria/ Header Image Credit:PNG Key

The Investments and SecuritiesTribunal, (IST) on Thursday 17th December 2020, made interim Orders restraininga Fintech company, Chaka Technologies Limited, and its promoters fromadvertising or offering for sale shares, stock or other securities of companiesor other entities.

Theinterim Orders, which apply to all Chaka platforms, were granted pursuant to anapplication by the Securities and Exchange Commission. In the application, theCommission - through its solicitor, Dr. Chuka Agbu SAN - informed the Tribunalthat the Defendants were engaged in investment activities, including providinga platform for the purchase of shares in foreign companies such as Google,Amazon and Alibaba.

The Commission alsostated that the said activities were carried out by the Defendants outside theregulatory purview of the Commission and without requisite registration, asstipulated by the Investment and Securities Act 2007. As disclosed in theprocesses filed by the Commission, the objective of the proceedings is to ensurethat all investment activities and market players are duly regulated by theCommission, in line with the requirements of the law.

Theproceedings came on the heels of the Commission's avowed intention to encourageinnovation within the market space, whilst also ensuring that all marketactivities are brought within regulatory purview and conducted within the ambitof the law and extant regulations. The Commission is concerned that withoutproper regulation, the genuine aspirations of market innovators and investorscould be subverted through the activities of unscrupulous actors who would tryto exploit the growing popularity of Fintech investment options, to thedetriment of the investing public.

Furtherproceedings before the Tribunal have been adjourned to January 15, 2021.

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