The Nigerian Exchange (NGX) has ordered that under no circumstance shall a Trading License Holder deliver the proceeds of sale of a client’s securities or transfer a portion or all of the client’s available balance to a third party.
In a notice to the investing community, the Nigerian exchange stated thus:
Trading License Holders are hereby reminded of their obligation to ensure strict compliance with the provisions of Rule 11:14-Third-Party Transactions (Sales Proceeds and Transfer of Client Balance in the Name of Third Party), Rulebook of The Exchange, 2015 (Dealing Members’ Rules), as amended, which provide as follows:
- Under no circumstance shall a Trading License Holder deliver the proceeds of sale of a client’s securities or transfer a portion or all of the client’s available balance to a third party,
- Any Trading License Holder that contravenes the above stated rule shall be liable to a minimum fine of Two Hundred and Fifty Thousand Naira (N250,000) and/or suspension from trading on the floors of The Exchange for a period to be determined by The Exchange.
- Note that non-compliance with the applicable Rules will attract appropriate regulatory sanctions.