BGL, Subsidiaries Remain Suspended – SEC | Independent Newspapers Limited
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Business, Money Market

BGL, Subsidiaries Remain Suspended – SEC

Posted: Sep 23, 2015 at 12:22 am   /   by   /   comments (0)

Stories by Bamidele Ogunwusi,


The Securities and Exchange Commission, (SEC), has said that BGL and its subsidiaries and sponsored individuals remain suspended from operating in the nation’s capital market.

A statement by the commission stated that, “This is to inform the general public that on September 17, 2015, the Federal High Court in Suit No. FHC/L/CS/767/15; BGL Plc & Ors Vs Securities and Exchange Commission, discharged the Ex-Parte order obtained by BGL Plc and its subsidiaries on the 27th of May 2015.

“In view of the Court’s ruling, BGL, its subsidiaries and sponsored individuals remain suspended from operating in the Nigerian capital market.

The notice added that “the Nigerian Stock Exchange (NSE), Central Securities Clearing System CSCS, Financial Market Dealers Quotation (FMDQ) Plc, Nigeria Association of Securities Dealers (NASD) Plc and the general public should further note that the directives of the Commission in its public notice dated the May 21, 2015 still subsists.”

SEC 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.

The Commission wishes to assure all stakeholders and the general public that it is committed to protecting investors and the capital market and to this end 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.

Meanwhile, BGL shares have been removed from the NASD OTC market.

This development means that investors who bought into the company shares are in confused state about how to dispose the shares of the troubled investment house.

It will appear that there may yet be a big shock for investors who may be considering the NASD OTC as break-out route to dispose of their stakes in the troubled firm.

Findings revealed that BGL is no longer on the eligible list on the NASD OTC platform.

What this means for investors is that they are technically stuck for now; the shares of BGL cannot be traded for now.

Ordinarily, being a public company, BGL Plc ought to have been listed on the OTC platform just like other companies in the same category; not just as a broker firm on the exchange.

Investors are urged to approach a participating Institution for clarification.

Hitherto, Justice Mohammed Yunusa of a Federal High Court in Lagos has vacated an interim injunction barring the SEC from expelling BGL Group from capital market activities over alleged fraud and malpractices.

The SEC had announced the expulsion of BGL from the nation’s capital market after receiving over 40 petitions from aggrieved investors, who claimed to have been defrauded by the company.

BGL’s Group Managing Director, Albert Okumagba, was also banned from operating as a Registered Sponsored Individual with SEC.

But the company, through its counsel, Mr. Kemi Pinheiro (SAN), had on May 27, 2015 obtained an interim injunction by Justice Saliu Saidu, stopping SEC from giving effect to the expulsion.

However, ruling on an application filed by SEC to discharge the order on last week Thursday, Justice Yunusa held that BGL concealed material facts from Justice Saidu who gave the interim injunction.

Yunusa said he was persuaded by the counsel for SEC, Prof. Kanyinsola Ajayi (SAN), who argued that the order was granted in error.

Ajayi had, in the application to discharge the order, stated that the ban on BGL was to protect members of the public who were investing in the capital market.

He had informed the court that BGL had been running at a loss to the tune of over N48.1billion as of December 2014.

He also stated that the company was indebted to various capital market investors, including the Rivers State Ministry of Finance, to the tune of over N5.8 billion as of June 2, 2015.