The Ghana Investment Promotion Centre (GIPC) has commenced investigations into the activities of CHY Century Heng Yue Group and its partner Sairui E-Commerce Ghana in the country.
It follows revelations from the Securities and Exchange Commission (SEC) that it has not licensed the Chinese firm to operate in the capital market space.
A statement issued by the GIPC said the action of the firm amounts to an offence under the Ghana Investment Promotion Centre Act.
“For the avoidance of doubt, it must be noted that the GIPC Act 2013 (Act 865) under section 24 (1) mandates the GIPC to register all enterprises with foreign participation in Ghana. However, section 1(2) of Act 865, in relation to the registration of enterprises does not restrict compliance with the requirements of any other enactment” the GIPC statement said.
“Consequently, allegations that CHY CENTURY HENG YENG GROUP LIMITED is engaged in various activities including Capital Market activities which are outside its registered objects at the GIPC, amounts to an offence under section 40 of the GIPC Act 2013(Act 865)” it added.
The Securities and Exchange Commission had earlier warned that C H Y Century Heng Yue Group and its partner Sairui E-Commerce Ghana have not been licensed to carry out any capital market activity, including investing or trading for returns as mandated by Section 3 of the Securities Industry Act.
“C H Y Century Heng Yue Group Limited/Sairui E-Commerce Ghana Limited are therefore not regulated by the SEC,” a statement by SEC said.
“The general public is advised to be cautious with investing in unlicensed products. The general and investing public is further advised to consult the SEC through its toll-free line number 0800 100 065 or main line number[s] 030 276 8970-2 to confirm the licensing status of any firm offering products or services relating to investments in the capital market,” the statement said.
The SEC assured all market operators, investors and the general public that it is “dedicated to ensuring rigorous implementation of all the rules for operators in the capital market in order to promote the orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected”.
It will be recalled that the SEC has issued similar warnings in the past, including investing in the gold dealership Menzgold, which led to many investors losing their money.
The Securities and Exchange Commission is the statutory body mandated by the Securities Industry Act 2016 (Act 929) to promote the orderly growth and development of an efficient, fair and transparent securities market, in which investors and the integrity of the market are protected.
One of the SEC’s core functions is to maintain surveillance over activities in the securities industry and to protect investors by publishing information at frequent intervals to inform investment decisions by members of the public.
Follow us on Twitter: @asaaseradio995