Nigerian Bank Nigeria Nigerian Stock Exchange – Nigeria Spends N201bn On Fuel Imports

Source: Vanguard, March 22, 2011

The Nigerian Stock Exchange (NSE) has threatened to sanction Afribank Securities Limited, Eurocomm Securities Limited, Aims Asset Management Limited, Centre Point Investment Limited, Adamawa Securities and 24 other stockbroking firms for breach of its rules.

According to a notice to dealing members and the affected firms, released by the NSE, Monday, the affected firms are advised to present their defenses and responses to its query sent earlier, on or before Friday, March 25, 2011 or face sanctions.

According to the notice, “The Exchange shall be compelled to sanction you appropriately, if a response does not reach the Exchange on or before Friday, March 25, 2011.”

The other affected firms are: Genesis Securities and Investment Limited, Options Securities Limited, OMAS Investment and Trust Company, Standard Chartered Securities Limited. Gosord Securities Limited, Fountain Securities Limited, Mutual Alliance Investment and Securities Limited, ESS Investment & Trust Limited, Kapital Care Trust & Securities Limited, Adonai Stockbrokers Limited, Solid Rock Securities and Investment Plc, and Mayfield Investment Limited.

Others are: Networth Securities & Finance Limited, Laksworth Investment & Securities Limited, Integrated Trust & Investment Limited, Readings Investment Limited, Vision Trust & Investment Limited, Summit Finance Company Limited, Centre Point Investment Limited, Quantum Securities Limited, Foresight Securities & Investment Limited, Shalom Investment Limited & Financial Services Limited, First Atlantic Securities Limited, TRW Stockbrokers Limited and UBA Stockbrokers Limited.

The reason for the NSE’s decision to sanction the firms was not disclosed as at the time of going to press, but market watchers said that it would not be unconnected to breach of certain rules of the NSE, complaints from investors and failure to file in their quarterly returns to the appropriate authority.

In addition, the NSE is also considering the introduction of new rules and sanctions for dealing members for misappropriation of clients’ funds, unauthorized sale of clients’ shares, unauthorized verification of shares and unauthorised third party transactions among others.

The NSE presented a draft of the new rules and sanctions to dealing members, noting that implementation of the stipulated penalties will take effect immediately the rules and regulations are approved by stakeholders.

The NSE, according to a circular tagged RRM/CIR/25/DK/02/11, said, “Please be informed that at its meeting held on 16th March, 2011, the Council of the Exchange approved the penalties set forth on the attached documents for breach of the Rules and Regulations Governing Dealing Members (Rules)” for breaches of the Rules.

“An exposure draft of the Recommended Penalties is hereby presented to the market for comments and contributions from Monday 18th March to Friday 25th March, 2011.

“Please note that implementation of the Recommended Penalties will take effect after a review of all comments and contributions.”

Nigerian Bank Nigeria Nigerian Stock Exchange