By Babajide Komolafe & Peter Egwuatu

The Nigerian Stock Exchange, NSE has explained that its newly inaugurated Board of Trustees of Investors Protection Fund (IPF) is considering the modalities for the implementation of the Fund.

The exchange in reaction to earlier report, which wrongly blamed the Securities and Exchange Commission, SEC of delay in the implementation of the Fund said that the modalities for the implementation of the Fund has not yet been communicated to the commission as the Board of IPF is still considering modalities for the implementation of the Fund regarding compensation to investors who suffered loss in the stock market.

It will be recalled that recently, a group of investors lodged complaint to the NSE, demanding for their money trapped in one of the stockbroking firms suspended by the Exchange. The Exchange, however, told them that their complaints would have to wait until SEC approves the modalities for the implementation of the IPF.

The group, which identified itself as Retirees from Delta Steel Company Ltd, Warri Delta State, stated in their complaint to Investors Forum, “ We all gave our share certificates to our stockbroker, Securities Solution Ltd (Member of The Nigerian Stock Exchange), which they verified to our CSCS Account in 2008 and sometimes in Jan., 2012. We mandated them to sell some of our shares and pay the proceed to our banks accounts; we waited for payment and they never paid during and we got to know later that they have been suspended by The Nigeria Stock Exchange for misconduct and wrong practices in February 2012 after much pressure to get our money from them.

“ We wrote NSE with attention to Mr. Adebisi Onipede, Head, Stockbroker/Dealer Regulation forwarded to the NSE Head Office in Marina, Lagos. In the said letter, we informed them about what happened and how our money is yet to be paid after selling our shares by Securities Solution Limited, after which NSE replied and told us in a letter that they are still working on it and they did promised us they are going to do something about it. But till date, they are yet to resolve the matter and the information we heard was that NSE Lagos frozed the account of the stockbroking firm concerned and till date, nothing meaningful has been put together by NSE to pay us since the money is in their custody and they are aware the money is in their account till date.”

In its response, NSE stated “We acknowledge receipt of your email with respect to the above subject matter. Unfortunately, your complaint has remained unresolved because Securities Solution Limited (SSL) is currently on suspension and has been in an inactive capacity since April 2012.

The firm is currently before the Disciplinary Committee of the Council of The Exchange for their consideration. In the interim, please be informed that the Board of Trustees of the Investors Protection Fund (IPF) of the Exchange has recently been constituted and is currently considering the modalities for the operation of the Fund regarding compensation to investors, who suffered losses in the capital market. Be assured that your complaint will be promptly resolved when the Board concludes on these modalities. The Exchange appreciates your concerns and patience in our bid to get a resolution to your complaint. Please be assured that we take all complaints from the investing public seriously and will do all within our capacity to ensure that your complaint is resolved.”

COMPLAINTS AND INVESTIGATIONS

Is BGL Nubian Fund still existing?
I invested in the BGL Nubian fund about four years ago, and I was told I’ll get monthly reports, but I’ve not heard from them since. Does it still exist? (M. Skempe)

Investors Forum
The Fund is still in operation. For update on your investment contact, BGL Asset Management Limited. The contact is Plot 1061, Abagbon Close, Off Ologun Agbaje Street, P.O. Box 74122, Victoria Island, Lagos, Nigeria. Tel:    234 (1) 764 6785. Email: [email protected]

No dividend from AP and First Bank
I bought AP and First Bank shares as others did so many years ago. I also bought right issues, but for so many years now, I have not received any dividend and when it comes, it is very little despite purchasing them with big money. Please help tell them not to destroy the Nigerian capital market by paying meaningful dividends and promptly. (Professor Akpotor A. Ughelli)

Investor Forum
Companies are not compelled to declare dividend and it is also in the interest of the shareholders that a significant portion of the profit is ploughed back into the business to enhance future profitability. Also, the fact that you borrowed the money used for the investment is a personal issue. Investment is a risk, and investors should accept the consequences of whatever investment decisions they take. Note that AP has changed name to Forte Oil.

No dividend from Ecobank
I bought shares from Ecobank, Effurun branch, Delta state in 2008 and till date I have received only $1 in 2009: What will I do? (Obiezue Peter)

Investors Forum
Please contact the registrar of the bank, namely ESL Registrars Ltd. It is located at 16/A Rauf Taylor Close, Off Idego Street, Victoria Island, Lagos. You may also call an official of the bank on 08023877699

No dividend from Oceanic Bank
I bought shares from Oceanic Bank and was given certificate, but I have not heard anything about the shares again. (Ijeoma, Port Harcourt)

Investors Forum
Oceanic Bank has been acquired by Ecobank, and you are now a shareholder of Ecobank. For update on your shareholding, contact the registrar of the bank, namely ESL Registrars Ltd. It is located at 16/A Rauf Taylor Close, Off Idego Street, Victoria Island, Lagos. You may also call an official of the bank on 08023877699

No dividend from First Bank
I bought shares from First Bank Nigeria Plc in Edo State since 2007, but I have not been given dividend since 2009. Please help me find out why it is so. (Kesene O Felix)

Investors Forum
Please contact First Registrars   Plot 2 Abebe Village Road, Iganmu or call  08033018295, 08191410456

Discrepancy in Finbank, FCMB share exchange
I bought 3000 units of FinBank in January 2008 for N28, 500. I did not get share certificate until 2012 when I got a certificate carrying the name of FCMB, but for nine units of shares instead of the 3000 units I bought. Please what should I do? Meanwhile, I have not received any dividend since I bought the shares. (GODWIN AKOH.O)

Investors Forum
FCMB acquired Finbank and the shareholders of Finbank got one share of FCMB for 48 shares of Finbank they had. If you had 3000 units of Finbank, then you should now have 62.5 shares of FCMB. However, to clarify the actual status of your shareholding, contact the registrar of FCMB, namely City Securities Limited at Primrose Tower, 2nd Floor, 17A Tinubu Street, Lagos. Tel: 234-1-2641298, 234-1-7924462.