The Elimination of the Director Normal and President of the Nigerian Inventory Alternate by SEC



With the information of the elimination of the Prof. Ndi Okereke-Onyiuke and Alhaji Alinko Dangote, Director Normal and President of the Nigerian Inventory Alternate (NSE) respectively by the management of the Securities & Alternate Fee (SEC) on the fifth August, 2010 has been characterised with all kinds of controversies.

This got here as a shock as most traders are wanting in direction of brighter days because the NSE lately permitted the operation of the Asset Administration Firm (AMC) as a constructive instrument 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 change. In addition they see to resolve any monetary dispute involving the shareholders / traders and the market operators.

The Securities and Alternate Fee then again can also be a self regulatory physique that oversees the working of the Nigerian capital market and registration of all monetary firms in accordance with the Firms and Allied Issues Act, CAMA. In addition they obtain all excessive or delicate inventory transactions information from all of the inventory breaking 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 high helmsmen of the NSE.

There was a bitter face off between the Director Normal and the President of NSE extra time. This has been evident with the continuing litigation, allegations of monetary mismanagement, governance challenges, and the inordinate delays within the implementation of the success plan for the change. Only recently, Alhaji Alinko Dangote publicly got here out with the bomb shell that the NSE is broke. This additional fueled the non confidence imposed on them by the involved Nigerian traders.

In keeping with the DG of SEC, Ms. Arunma Oteh, yesterday (August 5, 2010) declared that "the elimination of the Director-Normal of the Nigerian Inventory Alternate (NSE), Prof. Ndi Okereke-Onyiuke and its' President, Alhaji Alinko Dangote was in the perfect curiosity of the capital market and traders as enshrined within the Funding and Securities Act (ISA) 2007 ".

The Poser

Do you suppose that the management of SEC was hasty of their choice 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 accordance with the phrases of the Ms. Arunma Oteh? Additionally, would you concur to the appointment of a forensic professional, Mr. Emmanuel Ikhazoboh to go 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 convey a couple of Plus or Pains to the Nigerian Capital Market as Nigerian traders will not be sure with the uncertainties of the Nigerian Capital Market?