It’s important to check and verify SEC Registration and any granted licenses before investing or transacting with a company. There are no legal issues with a firm or corporation that has obtained SEC Registration. If that is not the case, and it is soliciting investments without a license, it is nothing more than an illegal business entity. Similarly, if neither the SEC registration nor the license has been obtained, the legality of the transaction is in doubt. This article will show you how to determine whether or not a company is registered with the Securities and Exchange Commission in Nigeria.
The Securities and Exchange Commission (SEC) is the Nigerian national government regulatory agency in charge of capital market supervision, legal regulation of issuances and sales of securities and other investment instruments, and the protection of the investing public. It is also the registrar and overseer of the Nigerian corporate sector.
The Securities and Exchange Commission (SEC) of Nigeria is the country’s top financial regulator, overseen by the Federal Ministry of Finance. The Securities and Exchange Commission was founded in 1962, when the Capital Issues Committee was constituted as an ad hoc consulting and advising body.
Its mission was to review applications from companies seeking funding from the capital market and make recommendations on when such issues should be issued in order to avoid issues clustering and overstretching the market’s capacity.
HOW TO CHECK IF A COMPANY IS REGISTERED WITH SEC IN NIGERIA
We have highlighted three methods to check if a company is registered with the Securities and Exchange Commission in Nigeria.
CHECK ON THE SEC WEBSITE
Please visit the Securities and Exchange Commission website, http://www.sec.gov.ng, to check the status of a public firm registered with the corporate commission. This website offers a database of all SEC-registered companies’ information, which is updated within 24 hours after receipt.
VISIT THE SECURITY EXCHANGE COMMISSION OFFICE
On the off chance that you were unable to get to the Security Exchange Commission through their website, then try to pay a visit to the Securities and Exchange Commission’s Office.
The SEC’s public reference room, which can be reached using the information below, can provide information about a company’s registration status that is not available on the website.
Address: SEC Towers, Plot 272, Samuel Adesujo Ademulegun Street, Central Business District, P.M.B:315, Garki, Abuja, is the commission’s head office.
Phone: +234 (0) 94621100; +234 (0) 94621168
Moreover, there are regional offices in Lagos, Kano, and Port Harcourt.
SEND A MAIL TO THE COMMISSION
Another way to check if a company is registered with the Securities and Exchange Commission is to send an email to the Commission. You can get to them through the mail stated above.
You can also request copies of public filings, which will be mailed to you, in addition to information on a company’s registration status. The papers or information you require should be explicitly identified in your request. Your request will be acknowledged as soon as possible, and a substantive response will be provided.
How does the commission ensure that only qualified individuals trade on the stock exchange?
Ans: By registering for the first time and renewing your registration every two years. The activities of registered operators are being monitored. Conducting investigations to see if market rules and regulations have been violated
How does the commission keep track of operators’ activities?
Ans: There are two levels to this (on-site and off-site): Returns are reviewed off-site (at the Commission’s headquarters) — all registered operators must submit quarterly returns of their activities to the Commission for scrutiny. All detected flaws are forwarded to the appropriate parties for correction.
On-site inspection (at operators’ offices): Commission officials visit operators’ offices in a planned and coordinated fashion. This is to ensure that proper process is followed in the execution of the client’s mandate, as well as that best market practices are followed.
HOW TO REGISTER WITH THE SECURITY EXCHANGE COMMISSION IN NIGERIA
Registration procedure/steps — Documents are filed at the Office of the Director General (ODG), after which the documents forwarded are scrutinized, and any deficiencies found are informed to the applicants. Approval will be granted if there are no deficiencies.
REQUIREMENTS FOR SECURITIES EXCHANGE REGISTRATION
- Completed to the letter For the Company (Form SEC 5)
- Form SEC 2 and 2D – Sponsored Individuals/Compliance Officers who will be the Exchange’s key officers (i.e Managing Director and Principal Officers). (Double-sided forms must be completed)
- Forms SEC 2 and 2D – Company Directors (This form should be completed in duplicates)
- A brief history of the company, organizational and shareholding structure, principal officers, and details of previous and current activities should all be included in the profile of the company.
- The name(s) and address(es) of the company’s subsidiaries/affiliated firms, as well as their type of business and ownership percentage;
- A copy of the General Undertaking Form for Members;
- Two copies of existing or proposed by-laws or rules, such as the Code of Conduct, Code of Dealing, and other “Rules of the Exchange” documents;
- Information on its organization, including its structure and the profiles of its Council/Board members, as well as its rules and procedures;
- Detailed information about the Exchange’s promoters and senior officers;
- Proof of payment of assigned shares to shareholders;
- When finalized, a copy of the Exchange’s procedures as well as the specific documentation pertaining to the Investor Protection Fund and Trade Guarantee Fund;
- Manuals for forward instruction and inspection of member operations;
- Copy of Market Facility Information; Copy of Staff Policies and Procedures;
- Two copies of the Exchange’s listing requirements;
- Detailed details about the trading strategy to be used;
- A business strategy;
- Bank statement of the Company’s accounts during the last six months;
THE FEES AND COSTS OF REGISTERING A COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION (SEC) IN NIGERIA
- Evidence of Filing/Application Fee – ₦50,000 (Fifty Thousand Naira);
- Evidence of Processing Fee – ₦200,000 (Two Hundred Thousand Naira);
- Evidence of Registration Fee – ₦1,000,000 (One Million Naira);
- Evidence of Sponsored Individual Fee – ₦50,000 (Fifty Thousand Naira) for each sponsored individual
That’s the size of this article on how to check if a company is registered with SEC in Nigeria. This was a broad write-up as we also included all the important details you should know about the registration with the Securities and Exchange Commission. The cost and registration fees was also featured in this detailed piece.