Uche Usim, Abuja
The Securities and Exchange Commission’s (SEC)’s recent onslaught against companies engaged in illegal fund management has claimed its second casualty, Growing Circle, a Lagos-based firm.
According to the Commission, the company was hammered over its failure to duly register with it as the apex regulator. SEC said it sufficiently established that the company’s activities also constituted an infraction of the Investments and Securities Act (ISA), 2007.
According to SEC, while the company claimed to have a factory in Ogun State, the said factory could not be located even though the products were on display at its Lagos office. SEC management added that the closure was to end unlawful activities of the company against unsuspecting investors, even as it urged investors to ensure they only deal with fund managers that are registered with the Commission.
“The accounts of the company have been frozen, the promoters have been arrested by the Nigeria Police Force and are undergoing interrogation.
“They do not have registration with SEC and the Commission has powers according to Section 13 (w) of ISA 2007, to shut down any company carrying out capital market activities without due registration.
“The mode of operation of the company is that for a new entrant, registration is N10,000 and the person is not entitled to products while the second category has a registration fee of N16,000 that entitles the registrant to receive products.
“For anyone to come under the company, he has to come under an up liner since the company engages in networking business. For the networking business, the least stage is a starter point with minimum registration of $50 with an incentive of $15 for a member who introduces two down liners.