The Removal of the Director General and President of the Nigerian Stock Exchange by SEC
With the news of the removal 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 & Exchange Commission (SEC) on the 5th August, 2010 has been characterised with all sorts of controversies.
This came as a shock as most traders are wanting in the direction of brighter times as the NSE not long ago permitted the procedure of the Asset Administration Corporation (AMC) as a positive software to revive the bearish current market.
Curiously, NSE is a self regulatory authority of the Nigerian Stock Sector and a non-governmental corporation with board of council steering the affairs of the exchange. They also see to take care of any financial dispute involving the shareholders/traders and the marketplace operators.
The Securities and Trade Commission on the other hand is also a self regulatory body that oversees the running of the Nigerian cash sector and registration of all financial firms according to the Providers and Allied Issues Act, CAMA. They also receive all superior or delicate inventory transactions records from all the stock broking corporations as portion of compliance to the policies and regulation governing the market place.
To start with, let us search at the triggers that led to the sacking of the two major helmsmen of the NSE.
There has been a bitter confront off between the Director Basic and the President of NSE time beyond regulation. This has been obvious with the ongoing litigation, allegations of monetary mismanagement, governance issues, and the inordinate delays in the implementation of the succession program for the trade. Just recently, Alhaji Alinko Dangote publicly arrived out with the bomb shell that the NSE is broke. This more fuelled the non confidence imposed on them by the apprehensive Nigerian investors.
According to the D.G of SEC, Ms. Arunma Oteh, yesterday (August 5, 2010) declared that “the removing of the Director-Standard of the Nigerian Stock Trade (NSE), Prof. Ndi Okereke-Onyiuke and its’ President, Alhaji Alinko Dangote was in the most effective interest of the capital marketplace and investors as enshrined in the Financial investment and Securities Act (ISA) 2007”.
The Poser
Do you imagine that the management of SEC was hasty in their decision to clear away the aforementioned folks with out thanks investigation into the make a difference right before releasing the sledge hammer? Or was it completed in great faith to protect the Nigerian Funds industry in accordance to the words and phrases of the Ms. Arunma Oteh? Also, would you concur to the appointment of a forensic skilled, Mr. Emmanuel Ikhazoboh to head the NSE in the interim without the need of huge encounter of the Nigerian Inventory Market?
With the ongoing NSE shake-up, are we likely to encounter a different twist as it was accomplished in the banking industries by the Sanusi Lamido Sanusi led CBN? The change amongst the NSE shake-up and that of the CBN Reforms was that the previous did not examine in the allegations rocking the NSE just before taking steps.
Would you conclude that these actions by SEC would carry about a Furthermore or Pains to the Nigerian Cash Marketplace as Nigerian buyers are not specific with the uncertainties of the Nigerian Money Industry?
