The Securities and Exchange Commission (SEC) has cautioned Nigerians against investing in schemes operated by Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, commonly referred to as Stecs.
The SEC, in a circular issued from its Abuja office, revealed that these organizations are neither registered nor authorized to operate in the Nigerian capital market.
Despite this, they have been inviting the public to invest in their various schemes, such as the Stecs Commodity Mudarabah Investment Series I.
The regulatory body expressed concern over the risks associated with dealing with unregulated entities. It warned that investments in such schemes are not protected under Nigeria’s capital market framework.
Investors engaging with unregistered operators may face significant financial losses or fall victim to fraudulent activities.
SEC urged Nigerians to prioritize their financial safety by ensuring that any organization offering investment opportunities is properly registered and approved to operate in the capital market.
The Commission emphasized that its primary goal is to safeguard public interest and protect investors from unscrupulous practices.
This reminder serves as a cautionary measure to help Nigerians avoid risky ventures in the financial sector.
