Court dismisses BGL case against SEC

The Federal High Court sitting in Lagos has dismissed BGL cases against the Securities and Exchange Commission (SEC).

In its rulings, the court dismissed all the above cases “for being incompetent”, handing a major victory to the regulatory and investor protection mandates of the commission.

The three cases before the court filed against the commission by BGL Plc, its sponsored individuals and subsidiaries are FHC/L/CS/767/2015 BGL Plc & 4 ORS vs Securities and Exchange Commission II. FHC/L/CS/1050/2015 BGL Plc & 12 ORS vs Securities and Exchange Commission & 2 ORS III. FHC/L/121/2016 BGL Assets Management Limited & 22 ORS vs Securities And Exchange Commission & Anor.

SEC, the apex regulator of Nigerian capital market had in late April 2015 intervened in the operations of BGL Group Plc, suspended its board and set up an interim management board for the group. The interim management board, headed by a former president of Chartered Institute of Stockbrokers (CIS), Mr. Oladipo Aina, was mandated to conduct full investigation into the operations of BGL Group. Other members of the interim board were Mr. Abubakar Ambursa, Mrs. Hafsat Rufai, Ms. Temitayo Siyanbola and Ms. Tonne Ladipo-Ajayi.

On the basis of the investigation report, SEC suspended BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited from all capital market activities.

The commission also directed that all major officials and sponsored individuals of BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited whose particulars are contained in the Commission’s record as at December 2014 be suspended from performing any capital market activity.

SEC particularly cited Mr. Albert Okumagba, the group managing director of BGL Group and directed that Okumagba, who was the president of CIS before the sack of the board, should cease to be a registered sponsored individual with the commission following the withdrawal of the registration of BGL Plc as a capital market operator.