By Adedapo Adesanya
A digital stock trading licence has been issued to Chaka Technologies Limited by the Securities and Exchange Commission (SEC), making the stockbroker the first with such authorisation in Nigeria.
The commission’s Sub-Broker Serving Multiple Brokers Through a Digital Platform License will enable Chaka to offer stocks directly to Nigerian investors.
The licence also lets the company work with multiple stockbrokers and help digitise their services. This is a major game-changer as other players like Bamboo, Trove and Risevest, the investment-tech space will follow suit.
In December 2020, SEC issued a court order that effectively restricted Chaka from offering stocks to the investing public.
Business Post had reported in April that the commission also issued a circular directing the investment technology platforms in Nigeria to cease offering foreign stocks to Nigerians.
While Chaka did not have a stockbroking licence at the time, it struck a partnership with Citi Investment Capital Limited for Nigerian stocks and DriveWealth LLC for its foreign stock offerings.
With new development from SEC, Chaka then took steps in registering for the newly created license with the commission.
Commenting on the new license acquisition, Mr Tosin Osibodu, co-founder and Chief Executive Officer (CEO) of Chaka Technologies, stated that, “We are 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 towards 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.
“This license represents a significant milestone for all players within this industry, and we are confident that it will strengthen efforts towards fostering further growth and transformation.
“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.