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Four stocks firms penalised for illegal transactions

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By Abdulwahab Abdulah

enugu—The Investments and Securities Tribunal sitting in Enugu has ordered four stock broking firms to pay N5 million as penalty for illegal transactions and unlawful sale of multi-million naira worth of an investor’s shares.

The Tribunal, in its judgment delivered by  Presiding Chairman Hon. Nosa Smart Osemwengie, found the firms namely- Union Registrars Limited, UIDC Securities Limited, Gosord Securities Limited and Kapital Care Trust Securities Limited wanting in the handling of their customers’ investments.

Delivering judgment in a case instituted by Dr. Okam Kalu Ugwu, a medical doctor, against the Securities and Exchange Commission (SEC) and the four firms, the  Tribunal ordered that all irregular transactions in the Union Bank shares variously numbering 9,740 units, 20,740 units, 13,333, units, 9, 740 units, 25, 000 units, 16, 000, and 12, 986 units contained in different share certificates are declared illegal, unlawful, null and void.

In a statement by the Ag. Director, Corporate Affairs, Kenneth Ezea, the  Tribunal also held that Union Registrars Limited, UIDC Securities Limited and Gosord Securities Limited are to restore and restitute the Claimant with 549,453 Union Bank shares and all bonuses and dividends in line with   capital market rules, practice and procedures not later than 30 days from the date of the judgment.

Other Members of the Tribunal were Dr. Abubakar A. Ahmad, Albert l. Otesile, Mamman B. Zargana, Kasumi   G. Kurfi   and Onyemaechi   E. Elujekor.

Also Kapital Care Trust Securities Limited being the 5th Defendant was ordered to restore and restitute the Claimant with the 72,151units of Union Bank shares and accrued bonuses and dividends it unlawfully dealt with in line with Capital Market Rules, Practice and Procedures not later than 30 days from the date of the judgment and as well fined N100, 000 (One Hundred Thousand Naira) to be paid into the coffers of the Federal Government of Nigeria for breach of professional ethics in dealing with shares of the Claimant.


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