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With the information of the removing of the Prof. Ndi Okereke-Onyiuke and Alhaji Alinko Dangote, Director Common 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 the direction of brighter days because the NSE not too long ago authorized the operation of the Asset Administration Firm (AMC) as a optimistic 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 alternate. In addition they see to resolve any monetary dispute involving the shareholders/buyers and the market operators.
The Securities and Trade Fee then again can also be a self regulatory physique that oversees the operating of the Nigerian capital market and registration of all monetary firms in keeping with the Firms and Allied Issues Act, CAMA. In addition they obtain all excessive or delicate inventory transactions data from all of the inventory broking corporations as a part of compliance to the foundations and regulation governing the market.
Firstly, let’s take 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 Common and the President of NSE time beyond regulation. This has been evident with the continuing litigation, allegations of monetary mismanagement, governance challenges, and the inordinate delays within the implementation of the succession plan for the alternate. Only in the near past, 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 nervous Nigerian buyers.
In response to the D.G of SEC, Ms. Arunma Oteh, yesterday (August 5, 2010) declared that “the removing of the Director-Common of the Nigerian Inventory Trade (NSE), Prof. Ndi Okereke-Onyiuke and its’ President, Alhaji Alinko Dangote was in the perfect 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 keeping with the phrases of the Ms. Arunma Oteh? Additionally, would you concur to the appointment of a forensic knowledgeable, Mr. Emmanuel Ikhazoboh to move the NSE within the interim with out huge expertise of the Nigerian Inventory Market?
With the continuing 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 few Plus or Pains to the Nigerian Capital Market as Nigerian buyers usually are not sure with the uncertainties of the Nigerian Capital Market?
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Source by Uzoma Amaole