Proshare Logo
   Market Date: 30-09-2014   
Agriculture All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

ASHON writes SEC on Council Members, Demutualisation

Category: Capital Market


  Read (2846)
ASHON writes SEC on Council Members, Demutualisation

 

 

April 13, 2011
 
 
ASSOCIATION OF STOCK BROKING HOUSES OF NIGERIA
The Chairman
Securities and Exchange Commission
Plot 272 Samuel Adesujo Ademulegun Street
Central Business District
Garki
Abuja
 
Dear Sir,
 
RE: DIRECTIVES TO THE COUNCIL OF NSE
 
Your recent directives to the Council of the Nigerian Stock Exchange to appoint your nominated candidates as public interest members to the council without any consultation with shareholders/members was discussed at the emergency meeting at Market Operators Committee and our conclusion was that the directive seem to be an overreach of the powers of SEC. The section 35(1) quoted as legal basis for the directives in our opinion has nothing to do with the internal governance of the Exchange. For a new SEC that is preaching corporate governance, we do not see how the appointment of members to the Nigerian Stock Exchange Council promotes good governance, if the NSE Council lacks independence. Our position is that the interim Administration has ended with the new CEO. The attempt to perpetuate the continued stay of the Interim Administrator as deputy of the NSE is not only legal, but high handed.
 
On November 23, 2010 Stockbrokers after an election, nominated 7 of its members to represent it on Council in accordance with our rules, only three of these members were co-opted purportedly because of subsisting court cases. We have not been informed of any changes in the situation. How are the new members to be appointed by SEC exempt from this legal barrier? We view the attempt to appoint majority of the members of this council as a way to exercise proprietorial rights which SEC does not have. This is particularly interesting because the same directives talks about the expanded Council preparing the Exchange for sale of its shares to the public (demutualisation) without the involvement of the owners. Demutualisation as being proposed, using the power of the Regulator to force things through, will amount to expropriation of the Exchange and we find this completely unacceptable. The role of SEC as the apex regulator is limited to approving the guidelines prepared by members for the demutualisation exercise and nothing more.
 
Let us again reiterate that the current governing rules of the Stock Exchange have no place for non members of the Council appointing members to the Council. We will advise that this wrongheaded idea be abandoned immediately to avoid creating a crisis for a market that is trying to restore investor confidence that was essentially lost because of regulatory ineffectiveness and arbitrariness.
 
Signed
 
 
 


Tags: , 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Capital Market

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint