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Infractions: NSE may punish Afribank, UBA stockbrokers, 27 others




March 22, 2011 by Udeme Ekwere          
A total of 29-member firms of the Nigerian Stock Exchange may face various degrees of penalties for failing to adhere to the rules of the Exchange.
The NSE, in a notice posted on its website on Monday, said that the affected firms had until Friday, March 25, to respond to the queries earlier issued by the Exchange or they would face severe sanctions.
Afribank Securities Limited, UBA Stockbrokers Limited, Eurocomm Securities Limited, Foresight Securities Limited, Aims Asset Management Limited, Adonai Stockbrokers Limited are some of the affected firms.
“The Exchange shall be compelled to punish you appropriately, if a response does not reach the Exchange on or before Friday, March 25, 2011,” the notice read in part.
Some other companies affected were Centre Point Investment Limited, Quantum Securities Limited, Foresight Securities & Investment Limited, Shalom Investment Limited & Financial Services Limited, First Atlantic Securities Limited, TRW Stockbrokers Limited, Standard Chartered Securities Limited, Mutual Alliance Investment and Securities Limited, Networth Securities & Finance Limited, Laksworth Investment & Securities Limited and Integrated Trust & Investment Limited.
Other firms affected by the directive were Gosord Securities Limited, Fountain Securities Limited, ESS Investment & Trust Limited, Kapital Care Trust & Securities Limited, Solid Rock Securities and Investment Plc, Mayfield Investment Limited, OMAS Investment and Trust Company, Genesis Securities and Investment Limited, Options Securities Limited, Readings Investment Limited and Vision Trust & Investment Limited and Summit Finance Company Limited.
A stockbroker, who asked not to be named because of the nature of the subject, told our correspondent that the decision could have been as a result of the various degrees of infractions, ranging from inadequate capital to failure to submit their financials.
The Exchange also revealed that it was making plans towards the introduction of new rules and sanctions against dealing with members that misappropriated clients’ funds and engaged in unauthorised sale of clients’ shares, unauthorised verification of shares and unauthorised third party transactions, among others.
In a draft of the new rules and penalties made available to dealing members, the NSE noted that the implementation of the stipulated penalties would take effect once the rules and regulations had received the approval of all stakeholders.
The NSE, in a circular, tagged, ‘RRM/CIR/25/DK/02/11’, said, “Please be informed that at its meeting held on 16th March, 2011, the Council of the Exchange approved the penalties set forth on the attached documents for breach of the Rules and Regulations Governing Dealing Members (Rules) for breaches of the Rules.
“An exposure draft of the Recommended Penalties is hereby presented to the market for comments and contributions from Monday 18th March to Friday 25th March, 2011.”
Source: Punch
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