By Chinwendu Obienyi
The Securities and Exchange Commission (SEC) has directed all existing investment crowdfunding portals/digital commodities investment platforms to note the requirements and eligibility criteria for raising funds through and/or operating a Crowdfunding Portal and comply with the registration requirements or cease operations by June 30, 2021.
This is contained in a notice released by the Commission recently. According to the document, the rules governing Crowdfunding business in Nigeria came into effect on January 21, 2021, which was part of efforts by the Commission to ensure investor protection while encouraging innovation in the conduct of securities business.
“In line with the transitional provisions of the Rules, all persons/entities operating an investment crowdfunding portal/digital commodities investment platform prior to the commencement of the rules were expected to restructure all operations in accordance with the requirements of the rules and apply for registration not later than 90 days from the effective date.
“While the transitional period elapsed on the 21st day of April, 2021, the Commission hereby directs all existing investment crowdfunding portals/digital commodities investment platforms to note the requirements and eligibility criteria for raising funds through and/or operating a Crowdfunding Portal and comply with the registration requirements or cease operations by the 30th of June, 2021, failing which the operations of such platform would be categorized as illegal and attract regulatory sanction as stipulated in the Rules”, the commission said.
Meanwhile, bearish sentiments continued to dominate proceedings on the floor of Nigeria’ stock market for the fourth consecutive trading day as sell-offs in Dangote Cement, Sovereign Insurance among others drove the market’s index down by 0.49 per cent on Thursday.
The market’s index, which closed at 38,044.58 points also saw its capitalisation down to N19.829 trillion as investors lost N99 billion from an opening value of N19.928 trillion.