The Securities and Exchange Commission (SEC) has given approval to Chaka Technologies Ltd. to operate a digital platform for buying and selling of local stocks.
Efe Ebelo, Head, Corporate Communications, SEC, told the News Agency of Nigeria (NAN), on Wednesday in Lagos, that the company’s application was approved last week by the commission.
She added that the company was licensed to operate as sub-broker (digital) trading on local stocks.
NAN reports that Chaka Technologies, with the approval, becomes the first to acquire the digital sub-brokers license introduced by SEC in April.
The approval came after months of uncertainty regarding regulations of digital trading in Nigeria.
Confirming the approval, Tosin Osibodu, Co-founder & CEO, Chaka Technologies, said in a statement that the company was pleased with the achievement.
Chaka is pleased to announce its recent acquisition of the digital sub-broker/sub-broker serving multiple brokers through a digital platform.
“This makes Chaka the first recipient of this newly created license by the SEC, as part of the commission’s efforts to foster regulation within the investment-tech space, to ensure the safety of the investing public while encouraging innovation within the sector,” Mr Osibodu said.
He said the company was honoured to be the foremost fintech company to receive SEC’s first Fintech license in Nigeria, the digital sub-broker license.
“For us, this is an important step toward achieving our vision to level the playing field for African investors, and a defining moment for the future of digital investments in Nigeria, and Africa at large.
“Receiving this new license will enable us to continue to power on our mission to enable digital investing for businesses and individuals in the country and beyond.
“As Nigeria remains an attractive hive for fintech innovation, this new license from the SEC is the much-needed guide to help safeguard the investing public amid the ever-evolving landscape,” said Mr Osibodu.
He added that the license represented a significant milestone for all players within the industry, and that it would strengthen efforts towards fostering further growth and transformation of the industry.
“We are proud to set this precedent and are excited for the long-term impact of this new regulation and what it signals for the future.
“We are also thankful for the continued trust from our investors and partners, as we remain committed to fulfilling their needs,” he added.
He said Chaka.com is a platform implemented by Chaka Technologies to provide technology services, marketing, customer service and operations to brokers on behalf of their customers.
“Chaka is powering borderless investing for business and individuals in Africa. We provide unrestricted access to over 4,000 stocks trading on capital markets,” said Mr Osibodu.(NAN)