Securities and Exchange Commission, SEC has announced it has indicted Sterling Registrars Limited and six other persons as respondents for unlawful allotment of shares.
The culprits were allegedly indicted for payment of return monies to persons not entitled thereto and violations of the SEC Rules and Regulations (As Amended) and the Code of Conduct for Capital Market Operators and their employees.
This is coming at a time the Administrative Proceedings Committee, APC, of SEC has been intensifying efforts at riding the market of infractions in line with the Investments and Securities Act, ISA 2007.
The APC uncovered that “the full identity of the owners of Kalstead Farms Investment Ltd especially that of the Chairman was not known to Quantum Securities Ltd. Further, the identities of Messrs Aina Folasade and Ekundayo Akin who signed the mandates for Kalstead Farms Investment Ltd were unknown to Quantum Securities Ltd as same was not made available to the operator.
“Quantum Securities Ltd could not confirm the source/ownership of the 1,637,937 (One Million Six Hundred and Thirty Seven Thousand Nine Hundred and Thirty Seven) units, 131,355 (One Hundred and Thirty One Thousand Three Hundred and Fifty Five) units and 50,700 (Fifty Thousand and Seven Hundred) units of Japaul Oil & Maritime Services Plc shares directly deposited into Kalstead Farms Investment Ltd’s CSCS account No. 7118924 by Sterling Registrars Ltd.
“The complaint against the Respondents emanated from Initial Public Offer (IPO) of Japaul Oil & Maritime Services Plc which took place in 2007, wherein there was an offer for subscription of 1, 007,488,188 (One Billion, Seven Million Four Hundred and Eighty Eight Thousand One Hundred and Eighty Eight) ordinary shares of fifty kobo each at N3.95 per share.
“The offer opened on September 24, 2007 and closed on October 31, 2007 while the private placement to absorb the excess subscription opened on May 6, 2008 and closed same day.”
