Investment firm EM Capital Partners has filed a writ seeking to stop the Securities and Exchange Commission (SEC) from taking any action that would hurt its reputation.
This follows a decision by SEC to place EM capital under investigations and also warns the public not deal with the firm for now due to concerns raised about its inability to pay back customers’ investments that are due.
EM capital has file two separate writs at the high courts, the first one is an interlocutory injunction, seeking to prevent the Securities and Exchange Commission from taking actions that would affect its fortunes, as well as comments and actions that would not be in the interest of the company.
They also want to stop SEC from looking at the option of withdrawing their license, after the said investigations on violating sections of the securities’ law is completed, which EM capital is contesting.
The Second writ is also seeking to bring officials of SEC, including their directors a before high court and question them on how they handled the EM capital case.
It will also seek answers to why were they not given the required hearing before the public notice which claimed that they had failed to pay back investments of depositors that were due.
EM capital was one of the 10 companies that were named in a recent public notice by the capital market regulator which warned the public not to deal with them because they are under investigations.
The commission then argued that they want to establish that complaints levelled against these firms are true or not, which is boarding on violation of the provision of the Securities Act 2016 (Act 929).