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Press Release - SEC gives seven-day ultimatum to the NSEs Director-General to explain her involvemen

1805hrs, Abuja, Nigeria - 19th August 2009

Directs immediate suspension of affected Bank Executives from the Council of the NSE

1.    The Board of the Commission at its 43rd meeting held today the 19th August, 2009 noted the recent developments in the financial market and affirmed its full support of the action so far taken by the Central Bank of Nigeria (CBN) in sanitizing the banking system and has mandated its Management to intensify surveillance of the Capital Market and its Operators.

2.    In order to give the new Management of the five (5) affected banks time to settle down and appropriately brief the market, the Commission confirms that it had directed the NSE to place the securities of the said banks on full suspension for a period of two (2) weeks.

3.    Furthermore, in order to protect the integrity of the Capital Market, the Commission has also directed the immediate suspension of any of the affected Executives of the five (5) banks who are members of the Council of the NSE pending the conclusion of investigation of allegations against them by the CBN.

4.    In furtherance of its mandate of ensuring the integrity of the market, the Commission has requested the DG of the NSE to explain within seven (7) days the circumstances under which the name of the company of which she is the Chairman appeared on the list of non-performing debtors to the five (5) banks given the sensitivity of her position as the Chief Executive Officer of the NSE where the five (5) banks are also listed.

5.    The Commission has also directed that henceforth no securities of a public quoted company should be placed on technical or any other form of suspension without the prior approval of the Commission.

Apart from the five (5) banks whose suspension was recently approved by the Commission, the NSE has been directed to forward to the Commission, the list of all quoted companies currently on technical suspension, for its review.

6.    AP PLC UNDERWRITING ISSUE

The Board of the commission is very concerned about the allegations of alteration in the documentation relating to the underwriting commitment in the AP Plc public offer and has mandated Management to expedite action on its investigations.


Lanre Oloyi
Head, Media
Securities & Exchange Commission
19TH AUGUST, 2009
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   Displaying 10 Latest Comments
  Abayomi Oloko   Good development. I expect this type of positive bandwagon effect to start. I had issues with the placing of the stock of the affected banks on technical suspension because it amounts to unnecessary creation of "sacred cows". If a company is badly managed, let the shareholders bear the brunt and thats the logical law of modern business. It is also a lesson that people need to be more actively involved in the matters that concerns and affects them.
 2009-08-19 20:04:12
  Osotekun Osodiran   It will be most shocking if the commission remains unconcerned about whatever role the NSE DG may have played in all these mess. I've always feel uncomfortable with her involvement in the management of Transcorp.
2009-08-20 07:50:00
  Osotekun Osodiran   Someone should tell Intercontinental Bank Plc to withdraw that deceitful publication about United Alliance Company of Nigeria Limited's debt being performing. The CBN did mentioned that the cut-off period for reported figures was May. The bank will not have been in this situation if those money were paid much earlier and if other debtors were servicing their debts as at when due.
2009-08-20 08:02:05
  Cletus Okpakoro   The federal government or the concerned authorities should pls., as a matter of ugency sensitise the nation obout the position of the banks involve in the sack situations because many Nigerians are thinking that the back is bankrupt and their money will be traped there. The minister should pls educate the innocent public that the 5 banks are not clossing.
 2009-08-20 10:02:40
  Michael Abuku   Nigerians must allow transparency to prevail in the private sector even if the public sector is fumbling. This will give us a sense of respect as businessmen across the globe. No one should therefore be spared no matter how highly placed. This crusade should continue.
 2009-08-20 11:16:38
  sani kabir   positive development: But iam calling the attention of DG of NSE to formally resign her appointment for the seek of sanity in the capital maket. This is because she has been aware of all this irrigularity. who approve the most of the companies to underwent public offer. Pls, resign.
 2009-08-20 13:03:06
  edidiong efiong   The response of the NSE DG to the directive of SEC concerning Akingbola and transcorp is true to type. This woman's removal or at least suspension would not be out of place at all; it would go some way to sanitize the market whose name has been put in disrepute by her utterances and posturing anytime issues of discipline is raised by SEC. Frankly, I do not see confidence returning to the market with her at the heil.
 2009-08-20 16:54:26
  Rasheed Ahmed   Very swift; on the suspension of the bank officials directly connected with the Stock exchange, unlike the CIBN that is still dragging its feet on taking a decisive action against its president. Too little, too late; on the seven-day ultimatum given to the DG. The august body should call for her to step aside, failing which she should be dismissed from office. Isn't there a conflict of interest on her position as the DG of the Stock Exchange and her chairmanship of one of the companies (i.e. Transcorp) quoted on the Exchange? Madam Stock Exchange has been around for too long that she has begun to think of herself as an institution, not amenable to responsible corporate behaviours. I align myself with the views expressed by Abayomi Oloko. Placing the stocks/shares of the five banks on technical suspension is tantamount to undue interference on a market that is supposed to be "perfect". The stock market is information driven and the price of the quoted shares adjusts to information whether good or bad. When the SEC brings their influence to bear on the market in this way, it serves to discredit the integrity of the market.
2009-08-21 14:22:23
  koliy aroski   I AGREE WIT THE FOLKS CALLING FOR THE SACK OF MADAM NSE. she cant be on the board of a company that er office is overseeing. It ad to take a can of worms opened up to bring tins to this stage. SHE SHOULD BE ALLOWED TO GO IN THE INTREST OF INVESTORS AND OTHER STACK HOLDERS.
 2009-08-21 20:49:36
 
 
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