Breaking News

SEC suspends two stockbroking firms for infractions

By Micheal Eboh and Province Obuh
The Securities and Exchange Commission (SEC) has announced the suspension of two stockbroking firms -Sikon Securities Limited and Gossord Securities Limited for various forms of market infractions.

According to a statement by SEC, both firms are barred from participating in all capital market until it decides otherwise.

The statement reads, “The Commission has suspended Sikon Securities Limited and Gosord Securities Limited from all capital market activities. The suspension is as result of the failure of the companies to comply with the commission’s directives with respect to complaints of infringements on capital market rules
and regulations received against them.

“The suspension shall remain in force until the companies are cleared by the Commission.”
Stockbrokers in the Nigerian capital market have expressed suspicions over the proposed Asset Management Company (AMC), being promoted by the Central Bank of

Nigeria (CBN) and other stakeholders in the capital market, declaring their readiness to work against the company if it is not in their best interest.

Speaking on the trading floor of the Nigerian Stock Exchange (NSE) last week, Mr. Samuel Olayemi disclosed that stockbrokers are aware of plans to set up the AMC but that they are not fully aware of the content of the bill seeking its set up and were not engaged and consulted by the authorities  in the processes leading to its set up.

Olayemi, who is also Managing Director/Chief Executive Officer, Mainland Trust Limited noted that stockbrokers will support the company if it is set up to cater for their interest and for the revival of the capital market, while they work against the success of the company if it does not favour their interest.

He said, “We are aware of the AMC and the bill that is before the National Assembly, that is being promoted by the CBN, but we do not know the contents and

structure of the AMC. If the bill is designed to further the interest and agenda of the promoters or is to be used to mop up the remaining asset of the troubled banks, we will not support it. We will support the company if we discover that it will be in the good interest of the capital market and its stakeholders, we will give it out total support, but if it will not be in our favour, we will ensure that we kill it.”

Also, the name of Dunlop Nigeria Plc was changed to DN Tyre & Rubber Plc on the recommendation of the Board of Directors of the Company, while the technical suspension on the shares of Cadbury Nigeria Plc was removed, following the two weeks allowed by the Exchange after the closure of the supplementary share offering to the public.

The value of listed equities on the NSE appreciated last week by N97.75 billion, as the market capitalisation and All-share index both appreciated by 1.94 per cent and 1.34 per cent respectively.

The index which opened the week at 21,635.36 points rose by 286.18 basis points to close the week at 21,349.18 points, while the capitalisation garnered N97.75 billion to close at N5.134 trillion from N5.036 trillion at which it opened the week.


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.