The Securities and Exchange Commission (SEC) Ghana has shut down Nyak-City Hostels Limited after the company was found to be offering investment products to the public without the required regulatory licence.
Nyak-City Hostels Limited, incorporated in 2025 by the Registrar of Companies, has been described as an unlicensed asset-backed investment company operating without approval from the financial markets regulator.
The company was promoting an investment product known as “Treasury Hostel Investment,” which it reportedly marketed as “a better alternative to a treasury bond.” The scheme allegedly offered investors the prospect of guaranteed lifetime returns based on investments in hostel facilities over a 60-year period.
The SEC’s intervention forms part of its broader efforts to strengthen investment sector regulation in Ghana, protect investors and prevent unlicensed companies from raising funds from the general public.
Speaking to the media during the shutdown, SEC Deputy Director General Mensah Thompson reaffirmed the Commission’s commitment to sanitising Ghana’s investment industry.
According to him, the SEC will continue to enforce the country’s capital market regulations while taking measures to protect investors and preserve confidence in Ghana’s financial sector.
The SEC’s action also underscores the need for members of the public to verify whether an investment company or financial product has the necessary regulatory approval before investing their money.
Source: newsthemegh.com