Section 245 Investments and Securities Act

Section 245 of the Investments and Securities Act 2025 is about Issuance of warehouse receipt. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

(1) A warehouse receipt as defined in this Act shall only be issued by an entity duly registered by the Commission and in a manner prescribed by the Commission.

(2) A commodity received note may be issued by a warehouse operator or any entity so authorised for a maximum period of two days or such period as may be determined by the Commission, to a depositor of commodities until the issuance of the warehouse receipt to the depositor.

(3) A person who violates the provisions of this section commits an offence and is liable on conviction to a fine of not less than N1,000,000 or imprisonment for a term of six months or both.

(4) A person who issues a warehouse receipt in contravention of the provisions of this section is liable, in lieu of criminal prosecution, to a penalty of not less than N2,000,000 and a further sum of N5,000 for every day the violation continues.