Section 99: Contents of contract notes

(1) A contract note given by a securities dealer under section 98 of this Act shall include;
(a) the name and style under which the securities dealer carries on his business as a securities dealer and the address of the principal place at which he so carries on his business;
(b) the name and address of the person to whom the securities dealer gives the contract note;
(c) the date on which the transaction took place and, if outside a securities exchange or capital trade point, a statement to that effect;
(d) the number, amount and description of the securities which are the subject of the contract;
(e) the price per unit of the securities;
(f) the amount of the consideration;
(g) the rate and amount of commission (if any) charged;
(h) the amounts of all stamp duties or other duties and taxes payable in connection with the contract; and
(i) if the settlement amount with or without benefit is to be added to or deducted from the settlement amount in respect of right to a benefit purchased or sold together with the securities, the first-mentioned amount and the nature of the benefit.
(2) A securities dealer shall not include in a contract note given under subsection (1) of this section the name and style which he knows, or is reasonably expected to know is not the name of the person with or for whom he has entered into the transaction.
(3) A reference in this section to a securities dealer dealing or entering into a transaction as principal includes a reference to a person:
(a) dealing or entering into a transaction on behalf of a person associated with him;
(b) dealing in securities on behalf of a body corporate in which he has a controlling interest ; or
(c) where he carries on business as a securities dealer on behalf of a body corporate in which his interest and the interest of his director together constitute a controlling interest
(4) For the purpose of this section:
(a) a securities dealer who is a member of a securities exchange or capital trade point shall not be taken to have entered into a transaction as principal by reason only that the transaction was entered into with another dealer who is a member of a securities exchange or capital trade point; and
(b) a transaction takes place in the ordinary course of business at a securities exchange or capital trade point in the prescribed circumstances or is a transaction that is a prescribed transaction for the purposes of this section.
(5) For the purpose of this section, a person is not associated with another person by reason only that he is a director of a body corporate of which the other person is also a director whether or not the body corporate carries on a business of dealing in securities.
(6) A securities dealer who fails to issue a contract note is liable to a penalty of not less than N50,000 and not more than N100,000.
(7) Any securities dealer or its principal officer who issues a contract note containing false or misleading information commits an offence and is liable to a penalty of N100,000, or an amount equivalent to four times the amount involved in the transaction, which ever is higher or to a term of imprisonment not exceeding 3 years.
(8) Where an investor suffers a loss as a result of the contravention of sections 98 and 99 of this Act, the securities dealer shall refund to the investor an amount equivalent to the loss, together with interest at a rate to be prescribed by the Commission from time to time.