SEC to expose defaulting capital market operators in new ‘Name and Shame’ strategy

The Securities and Exchange Commission (SEC) has announced plans to publicly disclose the names of capital market operators (CMOs) who violate market regulations as part of efforts to promote transparency and enforce discipline in the sector.

In a notice shared on Sunday via its official X page, SEC revealed that it will introduce a “name and shame” journal where the names of defaulting CMOs will be published. This initiative, according to the commission, is aimed at strengthening market integrity and boosting investor confidence.

“Stakeholders and the general public are hereby informed that henceforth, the names of Capital Market Operators (CMOs) found to have violated market laws/regulations would be published in the Commission’s ‘name and shame’ journal,” the notice stated.

SEC further clarified that the exposure of offenders will be in addition to any penalties provided under the Investments and Securities Act (ISA) 2007 and existing SEC rules and regulations. The commission reiterated its zero-tolerance policy for market infractions, emphasizing that strict compliance with regulatory standards is necessary to maintain stability.

“This enforcement strategy underscores the Commission’s dedication to safeguarding the integrity and stability of the Nigerian capital market, protecting investors, and ensuring strict adherence to established rules and regulations,” SEC stated.

Market participants were advised to comply with all regulations to avoid facing sanctions.

This announcement follows SEC’s recent actions against non-compliant firms. On March 14, 2025, the commission suspended Centurion Registrars Limited, along with its sponsored individuals and directors, from all capital market activities due to unresolved complaints.

In addition, the registration of Mainland Trust Limited as a capital market operator was revoked over regulatory violations.