SEC Nigeria Fines Stanbic IBTC N50.145M for GTCO Share Offer Breach
The Securities and Exchange Commission (SEC) of Nigeria has imposed a significant fine on Stanbic IBTC Capital Limited for regulatory breaches related to Guaranty Trust Holding Company Plc's (GTCO Plc) public offer of shares. The penalty, amounting to N50.145 million, was levied in March 2025, highlighting the importance of compliance with formal approval processes even as the financial sector becomes more digital.
The fine was a result of Stanbic IBTC Capital's use of digital channels for GTCO's share offer without obtaining the necessary 'No Objection' from the SEC. This action violated the regulatory body's guidelines, which require issuing houses to secure explicit approval before employing digital platforms for public offers. This measure is designed to protect investors and ensure transparency in the market.
The use of electronic and digital offering platforms has been on the rise in Nigeria, with the Nigerian Exchange Group (NGX) launching NGX Invest, a digital investment platform approved by the SEC. Despite this trend, Stanbic IBTC Capital's actions fell short of regulatory standards, leading to the substantial fine. Initially reported as N50.1 billion, the company's financial statement later corrected the figure to N50.1 million.
The SEC's penalty serves as a reminder to all market participants of the importance of adhering to regulatory guidelines, particularly in the digital age. Stanbic IBTC Capital's breach and subsequent fine underscore the need for strict compliance with formal approval processes to safeguard investors and maintain transparency in the Nigerian capital market.
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