The Security and Exchange Commission (SEC) has revoked the licences of five companies and directed them to stop carrying out any fund management activities with immediate effect.
The affected companies are Georgetown Capital Partners Limited, Equity Capital Limited, Index Analytics Limited, DM Capital Limited and Oxygen Advisory Limited.
A statement by SEC which was also published on the website of the commission explained that licences of the companies were revoked in pursuant to Section 122 of Security Industry Act, 2016 (Act 929).
SEC in the statement said the Davison to recipe the licences of these companies was as a result of the fact that they breached some provisions governing the operations of security companies.
It did not however state specifically outline the reasons for the action taken.
SEC has asked the public to desist from doing business with these companies.
“The Commission wishes to inform the general public that anyone who engages in any transaction with any of these companies or their representatives, in their capacity as Fund Managers, could be exposing him/herself to avoidable risk,” a statement on the commission’s website said.
SEC is mandated by law to promote the orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected.
This is contained in the Security Industry Act, 2016 (Act 929), SEC has been mandated
It also has the power to sanction and revoke any company that breaches any provisions in the Security Industrial Law.