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SEC Restrains Chaka Technologies From Stock Trading

The Security and Exchange Commission (SEC) on Thursday 17th December 2020 secured interim Orders from The Investments and Securities Tribunal, (IST) retraining fintech company, Chaka Technologies Limited, and its promoters from advertising or offering for sale shares, stock, or other securities of companies or other entities.

The interim Orders, which apply to all Chaka platforms, were granted pursuant to an application by the Securities and Exchange Commission.

In the application, the Commission – through its solicitor, Dr. Chuka Agbu SAN – informed the Tribunal that the defendants were engaged in investment activities, including providing a platform for the purchase of shares in foreign companies such as Google, Amazon, and Alibaba.

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The Commission also stated that the said activities were carried out by the defendants outside the regulatory purview of the Commission and without requisite registration, as stipulated by the Investment and Securities Act 2007.

As disclosed in the processes filed by the Commission, the objective of the proceedings is to ensure that all investment activities and market players are duly regulated by the Commission, in line with the requirements of the law.

The proceedings came on the heels of the Commission’s avowed intention to encourage innovation within the market space, whilst also ensuring that all market activities are brought within the regulatory purview and conducted within the ambit of the law and extant regulations.

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The Commission is concerned that without proper regulation, the genuine aspirations of market innovators and investors could be subverted through the activities of unscrupulous actors who would try to exploit the growing popularity of Fintech investment options, to the detriment of the investing public.

Further proceedings before the Tribunal have been adjourned to January 15, 2021.

Chaka is a financial technology company lowering access barriers between African and global capital markets. The company provides a regulatorily compliant platform for African individuals and businesses to invest and trade in global capital markets. The service currently provides access to 3,000+ assets in 40+ countries including the US, China, UK, and more.

Musa Suleiman
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