Unlawful Capital Market Actions: SEC shuts down Rising Circle – Proshare Nigeria Restricted

Wednesday, February 20, 2019 10.00AM / Press Launch by SEC Nigeria


The Securities and Alternate Fee, SEC, has
sealed off the premises of Rising Circle in Lagos for partaking in unlawful fund
administration actions.

In keeping with the Fee, the corporate was shut down
for finishing up funding operations that falls inside fund administration
with out registration with the apex regulator.

The fee had established that the corporate’s
actions additionally constituted an infraction of the Investments and Securities Act
(ISA), 2007.

In keeping with SEC, “They don’t have registration with
the SEC and the Fee has powers in line with Part 13 (w) of ISA 2007,
to close down any firm finishing up capital market actions with out due

“The mode of operation of the corporate is that for a
new entrant, registration is N10, 000 and the individual shouldn’t be entitled to
merchandise whereas the second class has a registration charge of N16,000 that
entitles the registrant to obtain merchandise.

“For anybody to return beneath the corporate, he has to return
beneath an up liner because the firm engages in networking enterprise.

For the networking enterprise, the least stage is a
starter level with minimal registration of $50 with an incentive of $15 for a
member who launched two down liners.

It was gathered that the corporate additionally engages in free
seminars at its head workplace for folks to be taught extra in regards to the merchandise and the
cash making enterprise with an unbeatable compensation plan and big bonus

The SEC disclosed that nonetheless, after registering, the
members declare they don’t get any merchandise from the corporate and all efforts to
retrieve their funds proved abortive, therefore the grievance to the SEC.

Whereas the corporate claimed to have a manufacturing unit in Ogun
state, the stated manufacturing unit couldn’t be situated despite the fact that the merchandise had been on
show at their Lagos workplace.

The SEC Administration stated the closure was to finish
illegal actions of the corporate in opposition to unsuspecting traders and subsequently
urged traders to make sure they solely cope with fund managers which are registered
with the Fee.

“The accounts of the corporate have been frozen; the
promoters have been arrested by the Nigeria Police Pressure and are present process

The Fee needs to inform the investing public
that the corporate shouldn’t be licensed to hold out investments enterprise of any sort
and as such its operations are unlawful.

The SEC subsequently advises the general public to train due
diligence and warning in the middle of making funding selections including that
legitimate licence of lawful operators could possibly be obtained on the fee’s web site
by members of the general public to substantiate the licences of companies with which they
intend to hold out funding actions.

Proshare Nigeria Pvt. Ltd.

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