Thursday 27, May 2010
The Securities and Exchange Commission has suspended Diamond Securities Limited, an operator in the capital market, from all capital market activities.
The company was sanctioned along with all its sponsors, for flouting market rules.
A statement from the regulator on Wednesday, signed by the Head, Media, Mr. Lanre Oloyi, said the company and its sponsors were suspended following observed unprofessional conduct.
According to the commission, the company failed to execute its client’s mandate and operate its account strictly according to instructions contrary to Code 1(v) of the Code of Conduct for Capital Market Operators ”made pursuant to Rule 43 SEC Rules and Regulations as amended.”
SEC also accused Diamond Securities of conversion of its client‘s securities for the benefit of a third party, contrary to “Rule 110 SEC Rules and Regulations as amended.”
”The suspension shall remain in force until the company is cleared by the commission,” the statement said.
The Director-General, SEC, Ms. Arunma Oteh, had on assumption of office said that the commission would not hesitate to name and shame anyone found to have violated market rules, no matter how highly placed, adding, however, that people would only be accused when found guilty ”after the commission‘s usual thorough investigations.”
About Diamond Securities Ltd
“We render first class financial services to our clients while increasing their wealth; ensuring that nothing is done against their interest. Diamond Securities Limited "DSL" is an 80% owned subsidiary of Diamond Bank Plc. The firm was originally known as DBL Securities until September 2005 when we acquired Lynac Securities Limited and changed our name to Diamond Securities Limited. We are a dealing member of the Nigerian Stock Exchange (NSE) and registered with the Securities & Exchange Commission (SEC) as a Broker/Dealer, Registrar, Investment Adviser/Portfolio Manager, and Trustee. We have an authorised share capital of 350 m with N300m issued and fully paid thereby making us one of the most capitalised firms in the financial sub-sector. We have rapidly established ourselves as a full service Securities firm offering diverse products and services to our local and international clients.” - http://www.diamondsecuritiesltd.com/