Olivia Dawson
Tue, Aug 29, 2023 7:45 PM

SEC Shuts Down Stockmatch Investments Ltd for Illegal Investment Activities

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SEC Shuts Down Stockmatch Investments Ltd for Illegal Investment Activities
The Securities and Exchange Commission (SEC) has taken decisive action against Stockmatch Investments Ltd, sealing the company's premises in Maiduguri for engaging in illegal investment activities. The SEC has warned the investing public to exercise caution and verify the registration status of any entity offering investment services. This move is part of the SEC's ongoing efforts to combat Ponzi schemes and protect the public from financial fraud.

ABUJA - In a renewed onslaught against promoters of Ponzi schemes, the Securities and Exchange Commission (SEC), on Tuesday, sealed the premises of Stockmatch Investments Ltd in Maiduguri, Borno State for allegedly engaging in illegal investment activities.

According to the commission, the office of the company in Wulari Plaza on Lagos Street Maiduguri, was shut down for allegedly carrying out investment operations that fall within the ambit of fund management without registration by the SEC.

"This company does not have registration of the SEC to conduct fund management activities and has been found to promise exorbitant rates of returns to lure investors. The SEC has exercised its powers under Section 13 (w) Investments and Securities Act 2007, to shut it down," the SEC stated.

"The commission hereby notifies the investing public that neither this entity nor its investment platforms are registered by the SEC.

"The public is hereby reminded that it is unlawful for any private enterprise whether incorporated as a company or not, to solicit funds from the public by whatever means, to fund its private ventures as doing this will be in contravention of the Investments and Securities Act, 2007'' the SEC stated.

The Commission, therefore, advised the public to always confirm from the commission whether an entity providing investment services has been duly registered and whether the investment schemes are authorized by it.

It warned that any member of the investing public dealing with unregistered entities was doing so at his/her own risk.

It further encouraged the public to exercise due diligence and caution in making investment decisions, adding that a list of valid operators can be obtained on its website www.sec.gov.ng.

This recent action by the SEC demonstrates its commitment to protecting the investing public from fraudulent investment practices. Ponzi schemes and illegal investment activities have plagued the financial industry, deceiving unsuspecting individuals by promising high returns on investments.

By shutting down the operations of Stockmatch Investments Ltd, the SEC sets a precedent for other dubious entities operating in violation of regulatory standards. It sends a clear message that those who engage in illegal investment activities will face severe consequences.

As an individual investor, it is crucial to exercise caution and due diligence before committing your hard-earned money to any investment opportunity. This means verifying the registration status of the company offering the investment and ensuring that the investment scheme is authorized by the SEC.

The SEC's website provides a valuable resource for investors to check the validity of investment operators. It is recommended that investors consult this list before making any investment decisions to protect themselves from falling victim to fraudulent schemes.

Additionally, investors should be wary of any investment opportunity that promises exorbitant rates of return with little to no risk. Remember, if an investment seems too good to be true, it probably is.

Investment scams can cause significant financial losses and emotional distress. It is important to stay informed, educate yourself about investment options, and seek professional advice when necessary.

By working together with regulatory bodies like the SEC and staying vigilant, we can help eradicate Ponzi schemes and illegal investment activities, creating a safer environment for all investors.

The SEC's actions against Stockmatch Investments Ltd should serve as a wake-up call for individuals contemplating investment opportunities. It is crucial to prioritize the security of your investments and protect yourself from potential financial harm.

As the SEC continues its efforts to combat illegal investment activities, it is hopeful that more entities engaging in fraudulent practices will be brought to justice, further safeguarding the investing public.

Let us remember that investing is a vital component of building wealth and achieving financial goals, but it should be done responsibly and within the confines of legal and regulated channels. Together, we can create a more transparent and trustworthy investment landscape.

Source of content: OOO News 2023-08-29 News

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