Despite efforts by the Nigerian Stock Exchange, NSE, to reduce contraventions in the equities market to the barest minimum, a total of 29 dealing member firms were involved in unauthorised sales of investors shares between January, 2012 and December, 2013.
Out of this, 26 were stockbroking firms, while the remaining three involved individual stockbrokers.
The stockbroking firms are Adamawa Securities Limited, Bytofel Trust and Investment Limited, De-canon Investment Limited, Dominion Trust limited, ECL Asset management Limited, Finbank Securities&Asset Management Limited, First Alstate Securities Limited, Fittco Securities Limited, GTM Securities and Assets Management ltd, Gosord Securities, ITIS Securities, Kapital care trust&Securities, Lakesworth Investment&securities Ltd, Lighthouse Asset Management, Lion Stockbrokers Ltd, Mact securities Ltd, Mainvest Asset Management and Marriot Securities limited.
Others are Maven Asset Management, Mountain Investment and Securities, Nova Finance & Securities, Omas Investment and Trust, Prime Wealth Capital, Royal Crest Securities, Securities Solution Limited and WT Securities Limited.
Individual stockbrokers involved are Mr. Kingsley Nnaji, Mr. Joel Okafor and Mr. Okafor George Nchedo. While Nnaji has been blacklisted for misconduct, Okafor is presently facing the disciplinary committee of the NSE, while Nchedo was investigated for misconduct.
14 out of the 29 cases have however been resolved after the firms and individuals concerned made restitution to the affected investors, while 15 are still pending with some of them already referred to the Disciplinary committee of the NSE for necessary actions.
Some of them have also been suspended from participating in any capital market activities pending the determination of their cases.
In related development, the Nigerian Stock Exchange, NSE, said it suspended 16 stockbroking firms for operating with an inadequate shareholders’ fund in 2013.
The firms affected are Colva securities Limited, Consolidated Investment limited, Dakal Services Limted, Empire Securities Limited, First Equity Securities, Genesis Securities&Investment, Lion Stockbrokers, LMB Stockbrokers, Mainstreet Securities, Mayfield Investment, and Midland Capital markets Limited.
The rest are Penisula Asset Management, Professional Stockbrokers Limited, Securities Trading&Investment Limited, Wema Asset Management Ltd and Northbridge Investment &Trust Ltd.
It would be recalled that in a bid to improve investors’ confidence in the market, the NSE had commenced a strong campaign against market infraction by its dealing members with introduction of Broker Trak.
The portal allows investors to monitor the performance and compliance level of dealing member firms, thereby enabling them to make more informed investment decisions. The aim by the NSE is to reduce contravention of market rules to its barest minimum while doing all within its means to restore confidence.