BGL suspension still subsists, SEC insist

Following the publication of the BGL 50 Index in a national newspaper, the Securities and Exchange Commission (SEC) Nigeria has insisted that the suspension of BGL Plc, its subsidiaries and sponsored individuals from all capital market activities still subsists.

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SEC in a notice it posted on its official website, said that the Commission dissociates itself from the “BGL 50 Index” publication.

According to the notice, The attention of the Securities and Exchange Commission (“The Commission”) has been drawn to a “Market Index” titled “BGL 50”, currently being sponsored by BGL Plc in Thisday Newspapers. This is to remind the general public that the suspension of BGL Plc, its subsidiaries and sponsored individuals from all capital market activities still subsists.

“The Commission hereby dissociates itself from the “BGL 50 Index” publication.

SEC in May 2015 announced the suspension of BGL Group Plc from all capital market operations. The SEC also said that Mr. Albert Okumagba, who is the Group Managing Director of BGL Group, should cease to be a registered Sponsored Individual with the commission following the withdrawal of the registration of BGL Plc as a capital market operator.

“He is therefore no longer entitled to carryout capital market activities,” SEC declared.

According to the commission, the decision to suspend BGL was taken after the commission’s Executive Management Committee meeting held on May 19, 2015, where it considered the report of a detailed investigation into the various complaints received from investors against subsidiaries of BGL Group.

SEC directed that “BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited be suspended from all capital market activities all Sponsored Individuals of BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited whose particulars are contained in the Commission’s record as at December 2014 be suspended from performing any capital market activity.”

The commission noted that “all suspicious transactions observed in the course of the investigation have been referred to the appropriate law enforcement agencies for further investigation; and BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited and all individuals involved in the management of the said companies have been referred to the SEC Administrative Proceedings Committee (APC) which will give all parties to the cases a fair hearing.”

The commission noted that it is empowered under Sections 13(n), 45, 303 of the Investments and Securities Act (ISA) 2007 and Rule 598 of its Rules and Regulation to protect the integrity of the capital market against all forms of abuses by investigating and sanctioning persons who violate the provisions of the Act and rules and regulation thereto.

It further assured that it is committed to protect investors and the capital market, saying “to this end, we will ensure that persons who violate the provisions of the Investment and Securities Act and the Rules and Regulations made pursuant thereto would be sanctioned appropriately.