Kayode Tokede, the head of NGX Regulation Limited, has imposed a total of N219.29 million in sanctions on five stockbroking firms for violating stock market rules.
The firms, CSL Stockbrokers Limited, Cowry Securities Limited, Meristem Stockbrokers Limited, SMADAC Securities Limited, and Associated Asset Managers Limited, were found to have engaged in various infractions, including market manipulation, illegal market dealings, and artificial price formation.
According to a letter signed by Ugochi Eke on behalf of NGX Regco, the firms were referred to the NGX Regulation Limited by an investigation panel following a hearing on February 25 and March 17, 2026.
The NGX Regulation Limited board met on March 27, 2026, and imposed the following penalties: N91.29 million on CSL Stockbrokers Limited, N50 million each on Cowry Securities Limited, Meristem Stockbrokers Limited, SMADAC Securities Limited, and Associated Asset Managers Limited.
The firms have been ordered to undergo a mandatory compliance and market conduct training.
The sanctions imposed on these five stockbroking firms by NGX Regulation Limited should serve as a warning to other market players that the regulator will not tolerate any form of malpractice. The N219.29 million fine is a significant amount that could have been invested in the market, but instead, it will be used to deter future infractions. This move by NGX Regulation Limited shows that it is committed to maintaining a fair and transparent market, and it is a step in the right direction for the growth of the Nigerian stock market.
