The Nigerian Exchange (NGX) Regulation Limited has sanctioned several trading licence holders for violating market rules, as part of its strict enforcement against market abuse.
In a circular dated April 7, 2026, the Exchange named Associated Asset Managers Limited, Cowry Securities Limited, CSL Stockbrokers Limited, Meristem Stockbrokers Limited, and SMADAC Securities Limited as firms involved in improper trading activities.
The Exchange said these firms engaged in practices such as wash trades, self-matching transactions, and coordinated trades executed for related clients. These transactions did not result in any real change in ownership of the securities and are classified as market manipulation and false trading under existing regulations.
As a result, Associated Asset Managers Limited, Cowry Securities Limited, Meristem Stockbrokers Limited, and SMADAC Securities Limited were each fined ₦50 million. CSL Stockbrokers Limited received a higher penalty of ₦91.29 million.
In addition to the fines, the Exchange directed that the management teams, authorised dealing clerks, and compliance officers of all the affected firms must undergo mandatory compliance and market conduct training.
In a separate action, the Exchange sanctioned other firms for different violations. LMB Stockbrokers Limited and Platinum Stockbrokers Limited had their trading licences revoked due to prolonged inactivity.
Premium Capital and Stockbrokers Limited was fined ₦5 million and also had its trading licence revoked for selling clients’ securities without authorisation.
The Exchange also withdrew the dealing clerk licence of Mr. Bernard Oluwole Ilori, following regulatory findings that had earlier led to his ban from participating in capital market activities.
The NGX stated that the affected firms have been engaged in discussions regarding the sanctions and that the decisions may be reviewed through its internal processes.
Despite the sanctions, the Exchange confirmed that the firms that still hold valid licences remain operational and are expected to continue meeting their obligations in the market.
The NGX also warned all trading licence holders to strictly follow market rules, stressing that any activity that creates false trading or artificial price movements will attract serious penalties.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
