Business
SEC Suspends Two Firms For Improper Equity Trading
The Woodland Capital
Market Plc and its directors were among firms and individuals suspended by Security and Exchange Commission (SEC) for an unauthorised sale of 3,750 units of Plc shares belonging to an investor as well as their refusal to comply to the commissions directive in that regard.
Another stock broking firm, International Standard Securities Ltd, including its directors and sponsored individuals, was also suspended from all capital market activities following its non-compliance with SEC rules and regulations and deficiencies observed in its operations during a target inspection carried out on it recently.
The commission explained that the build up to the suspension started in 2003 when the investor brought a PZ share certificate directly from another person without going through the standard practice of share transfer done by an accredited stockbroker, the investor gave the bought PZ certificate to a jobber (agent), to process the transfer of the PZ shares on the investor’s name.
Since then the investor has been getting returns on the investment as both dividends and bonuses declared have been going directly to him in 2011.
Beach Grove Securities looked into his records and discovered that 3750 units of PZ shares were bought for the investor by an agent with evidence of payment.
The SEC noted that both suspensions were indefinite and would remain in force pending the resolution of the matters against the operators.
Responding to the suspension, Woodland Capital Market said the shares sale was done in 2011 by the old promoters of Woodland Capital as the current management came in and took over Woodland in July 2013.