Section 91: Application monies to be held in trust until allotment

(1) Application monies and other monies paid prior to allotment of shares by an applicant on account of shares or other securities shall, until the allotment of the shares or other securities, be held in a separate account as deposit by the issuing house on such terms and condition as may be prescribed by the Commission.
(2) If any default is made in complying with the provisions of subsection (1) of this section, the issuing house who knowingly and wilfully authorises or permits the default is liable on conviction to pay a fine of not less than N100,000 or to imprisonment for a term of not less than six months or to both such fine and imprisonment.
(3) The Commission may, in lieu of a prosecution under subsection (2) of this section, also sanction a person who contravenes the provisions of subsection (1) of this section by imposing a penalty of not less than N500,000 and a further sum of not less than N5,000 for every day in which the violation continues.