SEC Sanctions Mainland Trust, Centurion Registrars Over Market Infractions

Naija247news reports that the Securities and Exchange Commission (SEC) has taken decisive action against Mainland Trust Limited and Centurion Registrars Limited over their alleged violations of regulatory guidelines governing the Nigerian capital market. The sanctions, which took immediate effect, were announced in separate statements issued by the commission on March 14.

Naija247news gathered that SEC’s enforcement measures were driven by the companies’ failure to comply with directives and resolve multiple complaints lodged against them. The apex capital market regulator emphasized that the actions were in line with its mandate to protect investors and ensure transparency in the financial sector.

According to Naija247news, SEC revoked the registration of Mainland Trust Limited as a capital market operator, citing persistent non-compliance and unresolved investor grievances. The commission invoked its powers under Section 38(4) of the Investments and Securities Act, 2007, as well as Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013, to enforce the revocation.

Naija247news understands that the regulatory body has advised all clients of Mainland Trust to contact the Central Securities Clearing System Plc (CSCS) for guidance on transferring their stocks to another stockbroker of their choice. Additionally, SEC directed other financial market institutions, including the Nigerian Exchange Group (NGX), Institute of Capital Market Registrars (ICMR), Chartered Institute of Stockbrokers (CIS), and relevant trade associations, to cease all dealings with Mainland Trust Limited.

Naija247news reports that Centurion Registrars Limited and its key officers have also been suspended from participating in any capital market activities. The company was sanctioned for similar infractions, including failure to comply with regulatory directives and non-resolution of investor complaints. The suspension was executed under the provisions of Section 38(4) & (5) of the Investments and Securities Act, 2007, and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013.

Naija247news gathered that SEC has advised Centurion Registrars’ clients to contact Africa Prudential Plc for assistance in transferring their portfolios to another registrar. The commission has also instructed all relevant regulatory bodies and capital market institutions to halt any dealings with the firm and its directors.

Naija247news understands that the sanctions come amid renewed calls for stricter oversight of the Nigerian capital market. Stakeholders have urged SEC, under the leadership of its new Director-General, Emomotimi Agama, to enforce market rules rigorously and penalize erring entities to maintain investor confidence.