Section 263 Investments and Securities Act

Section 263 of the Investments and Securities Act 2025 is about Liability for issuance of receipts for commodities not received. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

An issuer of a warehouse receipt, its employee, agent, or servant who issues or aids in the issuance of a receipt knowing that the commodities for which such receipt is issued have not been received by the warehouse operator, or are not under his direct control at the time of issuing such receipt, commits an offence and is liable on conviction for —

(a) an individual, to a fine of not less than N2,000,000 or imprisonment for a term not more than two years or both; or

(b) a corporate body, to a fine of N10, 000,000.