Five stockbroking firms operating in the Nigerian capital market have been sanctioned for engaging in market infractions.
The affected companies, Meristem Stockbrokers Limited, CSL Stockbrokers Limited, Cowry Securities Limited, Associated Asset Managers Limited, and SMADAC Securities Limited, were fined a total of N291 million.
The Nigerian Exchange Regulation (NGX RegCo) Limited, which imposed the penalties on the stockbrokers, accused them of being involved in wash trades and self-matching transactions.
It was gathered that the culprits were investigated by the exchange’s panel, which uncovered repeated instances of improper trading practices such as artificial price formation and misleading market activity.
They have all been directed to undergo mandatory compliance and market conduct training.
Business Post learned from a notice to the Securities and Exchange Commission (SEC) that CSL Stockbrokers Limited was fined over N91 million, while the other four firms were each fined N50 million in line with provisions of the Investment and Securities Act 2025.
NGX RegCo noted that the penalties reflect the gravity of the breaches and were aimed at strengthening market discipline, deterring misconduct and preserving the integrity of the Nigerian capital market.
It further stated that the action reinforces its drive to ensure a fair, orderly and transparent trading environment, while bolstering investor confidence through stricter enforcement of market rules.
In accordance with the Memorandum and Articles of Association (MemArt) of the Exchange, the board of NGX Regco held a meeting on March 27, 2026, wherein it confirmed the decision of the RNBC to sanction the five trading license holder firms. These sanctions are commensurate to infractions and to serve as a deterrence to these violations,” a part of the notice read.
The action of RegCo came a few weeks after the price movement of a company on the NGX platform, Zichis Agro-Allied Industries Plc, was probed after gaining almost 900 per cent in one month.
Trading in the shares of the company was suspended for about a month and was only lifted on March 23, 2026, with its share price adjusted downward to N8.58 from N17.36.