Section 238 Investments and Securities Act

Section 238 of the Investments and Securities Act 2025 is about Prohibition of use of certain titles. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

(1) A person other than a clearing house, a commodities exchange, a commodity broker, a commodity trading adviser or commodity pool operator shall not—
(a) take or use the title or description “clearing house” “commodity exchange” “commodity broker”, “spot commodity broker”, “commodity trading adviser”, “commodity pool operator”, or “spot commodity pool operator”; or

(b) take or use, or have attached to or exhibited at any place, any title or description that resembles the titles specified in paragraph (a) or so closely resembles such titles as to be calculated to deceive.

(2) A person who contravenes the provisions of this section is liable to a penalty of not less than N10,000,000 and a further sum of N20,000 for every day the violation continues.