NGX Regulation Limited has sanctioned five trading firms for market conduct violations, imposing a combined N291 million in penalties over infractions including wash trades and self-matching transactions.

In a notification to Securities and Exchange Commission (SEC), the regulator named the affected firms as CSL Stockbrokers Limited, Cowry Securities Limited, Meristem Stockbrokers Limited, SMADAC Securities Limited and Associated Asset Managers Limited.

The sanctions followed investigations by the exchange’s panel, which uncovered repeated instances of improper trading practices such as artificial price formation and misleading market activity.

CSL Stockbrokers Limited received the heaviest penalty of over N91 million, while the other four firms were each fined N50 million in line with provisions of the Investment and Securities Act 2025.

All five entities have also been directed to undergo mandatory compliance and market conduct training.

It states:” In accordance with the Memorandum and Articles of Association (MemArt) of the Exchange, the board of NGX Regco held a meeting on 27th March 2025 where in it confirmed the decision of the RNBC to sanction the five trading license holder firms. This sanctions are commensurate to infractions and to serve as a deterrence of these violations.”

According to NGX RegCo, the penalties reflect the gravity of the breaches and are aimed at strengthening market discipline, deterring misconduct and preserving the integrity of the Nigerian capital market.

The action reinforces the exchange’s drive to ensure a fair, orderly and transparent trading environment, while bolstering investor confidence through stricter enforcement of market rules.