SEC shuts down Growing Circle
The Securities and Exchange Commission, SEC, has wielded its axe on Growing Circle International Limited, a multilevel marketing company.
SEC noted that the company was shut down for engaging in illegal fund management operations, and for not possesing the ideal registration to operate business.
“They do not have registration with the SEC and the Commission has powers according to Section 13 (w) of ISA 2007, to shut down any company carrying out capital market activities without due registration”.
“The mode of operation of the company is that for a new entrant, registration is N10,000 and the person is not entitled to products while the second category has a registration fee of N16,000 that entitles the registrant to receive products.
“For anyone to come under the company, he has to come under an up liner since the company engages in networking business,” the market regulator said.
Growing Circle’s operational circle is centred around networking, with different points such as the starter point which comes with a minimum registration of $50. The package comes with an incentive of $15 for a member who brings two new members.
The SEC has revealed the company’s faux promises of disbursing funds and releasing products paid for. However, the funds raised have not been refunded.
SEC also revealed that the promoters have been handed over to the law enforcement agency, while their accounts have been frozen.
“The accounts of the company have been frozen, the promoters have been arrested by the Nigeria Police Force and are undergoing interrogation.
The Commission wishes to notify the investing public that the company is not licensed to carry out investments business of any type and as such its operations are illegal.
The SEC therefore advises the public to exercise due diligence and caution in the course of making investment decisions adding that valid licence of lawful operators could be obtained on the commission’s website by members of the public to confirm the licences of firms with which they intend to carry out investment activities.”
Earlier, the commission announced that the first Capital Market Committee (CMC) Meeting in 2019 has been scheduled to hold on Thursday, March 21, 2019 at the Eko Hotels & Suites, Lagos.
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