By Nkiruka Nnorom

Following an order by the Federal High Court vacating an interim injunction barring the Securities and Exchange Commission (SEC) from expelling BGL Group from capital market activities over alleged fraud and malpractices, SEC has said that BGL, its subsidiaries and sponsored individuals remain suspended from operating in the Nigerian capital market.

The commission in a notice posted on its website dated September 19, 2015 said: “This is to inform the general public that on September 17th, 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 21st of May 2015 still subsists.”

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.

SEC had suspended BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited whose particulars are contained in the commission’s record as at December 2014 over market infractions. The commission said it received over 40 letters of investor complaints against BGL Group Plc alleging indebtedness to the tune of about N5.8 billion. Investigations were conducted and all-parties meetings were arranged by SEC during which repayment agreements were struck between BGL and some of the affected investors.

Unfortunately, BGL continued reneging on promises to make restitution to investors.