Section 234 Investments and Securities Act

Section 234 of the Investments and Securities Act 2025 is about Prohibition of trading in particular contracts in commodities. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

(1) Where the Commission deems it necessary to protect persons transacting in particular contracts in commodities on a commodities exchange, it may prohibit or suspend trading in the commodities for a period not exceeding 14 days, and give notice in writing of the prohibition or suspension to the commodities exchange and the relevant depository, central counterparty, clearing house and warehouse:

Provided that the Commission may by notice in writing, extend the suspension for a further period not more than 30 days at a time.

(2) A commodities exchange which fails to comply with a notice given under subsection (1) is liable to a penalty of not less than N1,000,000, in the first instance and a further sum of N50,000 for every day the violation continues.

(3) The Commission may, in addition to the penalty prescribed under subsection (2) —
(a) refuse to consider any application made to the Commission by the commodities exchange;
(b) revoke the instrument of registration of the commodities exchange;

(c) petition the court for winding-up of the commodities exchange; or
(d) take any other action as it may deem fit.