With the information of the removing of the Prof. Ndi Okereke-Onyiuke and Alhaji Alinko Dangote, Director Normal and President of the Nigerian Inventory Trade (NSE) respectively by the management of the Securities & Trade Fee (SEC) on the fifth August, 2010 has been characterised with all kinds of controversies.
This got here as a shock as most buyers are trying in direction of brighter days because the NSE not too long ago permitted the operation of the Asset Administration Firm (AMC) as a constructive software to revive the bearish market.
Apparently, NSE is a self regulatory authority of the Nigerian Inventory Market and a non-governmental group with board of council steering the affairs of the trade. Additionally they see to resolve any monetary dispute involving the shareholders/buyers and the market operators.
The Securities and Trade Fee however can also be a self regulatory physique that oversees the operating of the Nigerian capital market and registration of all monetary firms in response to the Corporations and Allied Issues Act, CAMA. Additionally they obtain all excessive or delicate inventory transactions information from all of the inventory broking companies as a part of compliance to the principles and regulation governing the market.
Firstly, let’s have a look at the causes that led to the sacking of the 2 prime helmsmen of the NSE.
There was a bitter face off between the Director Normal and the President of NSE time beyond regulation. This has been evident with the continued litigation, allegations of economic mismanagement, governance challenges, and the inordinate delays within the implementation of the succession plan for the trade. Only recently, Alhaji Alinko Dangote publicly got here out with the bomb shell that the NSE is broke. This additional fuelled the non confidence imposed on them by the fearful Nigerian buyers.
Based on the D.G of SEC, Ms. Arunma Oteh, yesterday (August 5, 2010) declared that “the removing of the Director-Normal of the Nigerian Inventory Trade (NSE), Prof. Ndi Okereke-Onyiuke and its’ President, Alhaji Alinko Dangote was in one of the best curiosity of the capital market and buyers as enshrined within the Funding and Securities Act (ISA) 2007”.
The Poser
Do you assume that the management of SEC was hasty of their determination to take away the aforementioned people with out due investigation into the matter earlier than releasing the sledge hammer? Or was it completed in good religion to guard the Nigerian Capital market in response to the phrases of the Ms. Arunma Oteh? Additionally, would you concur to the appointment of a forensic professional, Mr. Emmanuel Ikhazoboh to move the NSE within the interim with out huge expertise of the Nigerian Inventory Market?
With the continued NSE shake-up, are we going to expertise one other twist because it was completed within the banking industries by the Sanusi Lamido Sanusi led CBN? The distinction between the NSE shake-up and that of the CBN Reforms was that the previous didn’t examine within the allegations rocking the NSE earlier than taking actions.
Would you conclude that these actions by SEC would deliver a couple of Plus or Pains to the Nigerian Capital Market as Nigerian buyers aren’t sure with the uncertainties of the Nigerian Capital Market?
