The Nigerian Exchange regulator, NGX has issued 37 regulatory actions against NGX, about 16 years after NGX was regulated.
This is according to a recent report by BrokerTraX, a compliance body for broker license holders.
The report showed that from 2011 to 2023, 3,792 violations were documented, including 193 rule violations by securities companies.
The initiative is aimed at improving investor confidence.
A more detailed analysis of the report shows that in 2011, NGX Regco carried out 257 enforcement actions against securities brokerage firms.
The number increased to 436 in 2012 and decreased slightly to 424 in 2013.
In addition, the data shows that Regco recorded 557 enforcement actions in 2014, which increased to 613028 in 202.
Figures for other years include 2017 (267), 2018 (171), 2019 (167), 2020 (82), 2021 (148) and 2022 (139).
In 2023, NGX Regco recorded 208 enforcement actions against business licensees, bringing the total to 3,792 sanctions.
“The reduction in the number of enforcement actions taken in 2020 is due to regulatory concessions granted to companies with commercial licenses to mitigate the negative effect of COVID-19 on their commercial operations,” NGX said.
“Between January 2012 and November 25, 2024, as many as 37 securities firms (whose names are being withheld) were implicated in the unauthorized sale of investor shares and misappropriation of investor funds,” the report said.
However, as a progress report, most of the complaints related to the unauthorized sale of investor shares and misappropriation of investor funds have been resolved, pending, or returned through the Investor Protection Fund (IPF).
