SEC bans Chaka Technologies for operating outside law

Investment and Securities Tribunal has barred Nigerian investment startup, Chaka Technologies, from operating, ordering Chaka to register under the Securities and Exchange Commission (SEC) if it intends to continue operation in Nigeria’s investment market.

Chaka Technology had previously received an interim restraining order in December 2020, following SEC’s application to the tribunal, informing IST that Chaka was operating outside the laws of investment.

The investment startup was established in 2019 to offer foreign shares to Nigerians interested in investing in companies such as Amazon, Google and Alibaba. It’s operational focus was to enable Nigerians and other Africans invest in global capital market.

SEC said the financial technology company was not regulatorily complaint, hence, Chaka should be restrained from stock trading. According to the investment regulatory body, Chaka is operating outside its purview against the Investment and Securities Act 2007.

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New development disclosed the tribunal ruled and considered SEC’s application on January 15, 2020. In a recent findings by Ripples Nigeria on Monday, it was gathered from SEC that Chaka has been barred and ordered to register under the commission, as expected from every investment firm.

This means Chaka, founded by Tosin Osibodu, is not allowed to advertise or offer shares, stock or other securities of companies or other entities for sale, until it registers the company’s investment operations under SEC.

Checks by Ripples Nigeria showed Chaka Technologies website is offline, as it is temporarily unavailable to visitors trying to access the company’s investment platform.

In its statement last year December, SEC had defended the restraining order on Chaka, stating that without proper regulation, genuine market innovators and investors could become victims to activities of unscrupulous persons that intend to exploit the growing popularity of Fintech investment platforms.

Prior to the ban, Chaka Technologies had received about $30,000 in fundraising from investors.

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