Nigeria’s Securities and Exchange Commission (SEC) has issued updated guidelines and rules governing the operation of Crowdfunding activities in the nation. The 53-page document could be downloaded here. Read the breakdown of the guidelines at Nairametrics:
Key Highlights of the new SEC regulations
- SEC introduced Crowd Funding Intermediaries who will facilitate crowdfunding transactions such as offer for sale of securities or instruments through its portal.
- This means anyone seeking to raise money through a crowdfunding service will have to go through a Crowd Funding Intermediary (CFI).
- Thus, a fundraiser (the initiator of the fund) will need to go through a CFI web portal to raise capital
- The new rules also limit the amount retail investors can invest in a crowdfunding transaction to just 10% of their net annual income in a year.
- This means individuals cannot invest more than 10% of their net salaries in crowdfunding activities. But this excludes High Networth Individuals who do not have limits.
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