A Lagos-based firm Growing Circle has been sealed by the Securities and Exchange Commission (SEC) for illegal fund management activities.
SEC revealed this in a statement on Tuesday where it noted that the development was due to the firm’s activities not sanctioned by the commission.
“They have not registered 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 commission added.
“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.”
In addition, SEC noted that “The accounts of the company have been frozen and the promoters have been arrested by the Nigeria Police Force and are undergoing interrogation.
“The commission wishes to notify the investing public that the company is not licensed to carry out investments business of any type and as such its operations are illegal.
“SEC, therefore, advises the public to exercise due diligence and caution in the course of making investment decisions.
“A valid licence of lawful operators can be obtained on the commission’s website by members of the public to confirm the licences of firms with which they intend to carry out investment activities.”