By Providence Obuh

As a follow up on BGL suspension by the Securities and Exchange Commission, SEC, shareholders have restated that the regulatory authority should be on the look out for more operators in the system. They foresee that with the recapitalization exercise carried out by SEC, issues of infractions, unauthorised sale of shares, among others will continue to arise; they also advised the regulatory body to take bold step to clean up the system “because right now people are not buying shares.”

Mr. Femi Oduyemi of Nigeria Shareholders Solidarity Association:

“I do not have stock with the BGL Group but as a shareholder I think suspending them will serve as a deterrent and final warning to them. When their clients do not give them mandate to sell and they sell, it shows laxity and insincere habit on their part.

A big company like BGL who should serve as example to others is involved in such a shameful act.

We respect the MD of BGL and for such a company to have involved in this sort of thing gives us fear to put our money in big firms, they should have a mind to change. However I give kudos to SEC and say that all the companies who are involved in things like this should be sanctioned, we still have others who are hiding.

I have case in Idumota, is in relation to unquoted stock, we went to the Institute of Stock Brokers and we won the case. Shareholders should be fully enlightened by SEC on their roles so that we can always take up any erring stock broker even without coming to the exchange on a legal position.

Mr. Godwin Anono, Chairman, Nigeria Professional Shareholders Association: “the suspension of BGL by SEC is a long story, because people have gone to complain about their activities. SEC is trying to sensitise the environment for investors. I think it is the right step in the right direction and I believe it will serve as a deterrent to others. There are other operators in town and since they have moved the share capital of stock broking firms higher, many will wither out, cases of this sort will spring forth.

“Many stock brokers that have sold the shares of their client will be coming up, issues like this will arise and SEC should take bold step to clean the system because right now people are not buying shares. “Once you are bitten by a snake, when you see worm you call it snake,” that is exactly the position of Nigeria investors, things need to change for good.

It is not necessary whether SEC consults anybody or not, they have identified them for wrong doing before ever taking that decision, with what SEC has done, they are trying to protect the interest of the shareholders. In the capital market, the rules are started and once you default you should be penalized. ”