Regulatory Alerts2015-04-17
Rules on Trading in Unlisted Securities
All transactions involving securities of unlisted public companies must be conducted exclusively through a Commission-approved platform facilitated by a registered securities exchange. These regulations mandate that all market participants, including companies, directors, and brokers, must utilize these formal systems for buying, selling, or transferring such securities. Violations of these requirements incur a minimum penalty of N100,000 for the first instance plus a daily default fine of N5,000.
RULES ON TRADING IN UNLISTED SECURITIES
a. All Securities of unlisted public companies shall be bought, sold or transferred only by means of a system approved by the Commission and under such terms and conditions as the Commission may prescribe from time to time.
b. No person shall buy, sell or otherwise transfer securities of an unlisted public company except through the platform of a registered securities exchange established for the purpose of facilitating over-the-counter trading of securities.
c. Any unlisted public company, director, company secretary, registrar, broker/dealer or such other persons who facilitate the buying, selling or transfers of the securities of an unlisted public company otherwise than through the platform of a duly registered securities exchange, shall be liable to a penalty of not less than N100,000 in the first instance and not more than N5,000 for every day of default.