By Peter Egwuatu
ASSOCIATION of Stock broking Houses of Nigeria (ASHON) has pledged to work closely with the regulators in the Nigerian capital market to curb or minimise sharp practices among operators in the market in 2010
To that extent, ASHON disclosed that it is awaiting the approval from the Securities and Exchange Commission (SEC) to grant it the status of becoming aÂ Self Regulatory Organisation (SRO).
In a chat with Vanguard, Chairman of ASHON, Alhaji R.O Yusuff, said, â€œ We have applied to SEC to grant us the status of becoming SRO so that we could properly assist the Commission in curbing sharp practices among operators. We are determined to work closely with SEC to achieve the Zero tolerance objective of the Federal Government.
Already we have been having quarterly meeting with the Commission and deliberating on various issues that would further develop the marketâ€
Speaking,Â Managing Director, Compass Securiries Limited and Vice Chairman, ASHON , Mr. Madubuike EmekaÂ affirmed that there are lapses and omission of some recommendations from the stockbrokers in the contents of the proposed Assets Management Company (AMC) bill now with the National Assembly for consideration .
According to him â€œ There is a disconnect between what the Central Bank of Nigeria (CBN) stated and what the consultants is implementing. Who is a debtor under the scheme? We are going to protest to National Assembly to amend the content so that it could be a reflection ofÂ a national programme aimed at improving the economy.
AMC should be made a national policy where its key purpose will be to improve the economy and not assists banks alone to improve their capital and liquidity positions by taking troubled assets (qualifying loans) from the banks.
We are kicking against the proposed entity because the apex bank did not make wide consultation before submitting the AMC bill to the National Assembly. What we are seeing is different from what the CBN Govornor, Lamido Sanusi told us at the stakeholders meeting. So the consultants is not putting it right.â€
The bill on the AMC expected to buy up the toxic assets of banks that are causing liquidity problem in the financial system has already been submitted to the Presidency for onward delivery to the National Assembly.
The AMC is expected to have N250 billion capital, to be owned 60 per cent by the CBN and 40 per cent by the Federal Ministry of Finance.
According to him, â€œ When we got the information that the bill was not all encompassing, we have decided to approach National Assembly to amend the content. But it will be unfair if the CBN sends the bill without our inputs.
The AMC was an idea that we suggested to the former CBN governor, (Prof. Chukwuma Soludo) when the financial crisis started. But he did not take any action on it,â€On the issue of ASHON becoming an SRO, Managing Director, Solid Rock Securities & Investment Limited, â€œ We want to become SRO to enable us monitor our members and hence curb or reduce infractions in the market.
We have pledged to the regulators that we are going to abide by the rules of the game to ensure confidence is returned to the market. We want SEC to delegates some of its responsibilities to us so that we can be able to make sure that mal practices are curbed or drastically reduced. We intend to work with SEC and Nigerian Stock Exchange (NSE) to review some of the rules that have become obsolete.â€