The Securities and Exchange Commission (SEC) has imposed a fine of N50.145 million on Stanbic IBTC Capital Limited for regulatory breaches tied to Guaranty Trust Holding Company Plc’s (GTCO Plc) public offer of shares.
According to Stanbic IBTC’s half-year 2025 financial results, the fine was issued in its capacity as Lead Issuing House for the GTCO offer.
The SEC said Stanbic IBTC Capital failed to obtain its mandatory “No Objection” or approval before deploying digital distribution channels such as internet banking and mobile apps to receive applications during the public offer.
In Nigeria, SEC requires that issuing houses and other market operators obtain explicit approval from the Commission before deploying digital or electronic channels for public offers.
The use of electronic / digital offering platforms (“e-offerings”) in Nigeria has been growing rapidly. SEC has in recent years been promoting and regulating such platforms.
Under draft guidelines published by SEC, electronic offering (e-O) allows internet, mobile apps, USSD, and other electronic means to carry out key parts of public offers such as display of prospectuses or offering memoranda, subscription, payment, and allotment.
However, regulators have stressed that though the process is becoming more digital, this must not come at the expense of compliance.
The need for formal approval before deploying digital channels is part of this: to protect investors, to ensure transparency and fair processes, and to guard against misuse or incorrect disclosures.