Dispute Resolution in the OTC Market


Monday, March 21, 2016 11:45AM /TheAnalyst

Dispute resolution in the Nigerian Capital Market remains one sure way to ensuring transparency, integrity and investor protection.

While it has been established that the number of investors in the Nigerian Capital market has greatly decreased due to a variety of factors with the prevalence of fraudulent operators identified as one of the reasons, and as such many investors have resolved to not utilize the justice system due to the history of delayed case resolution and lost monies.

With the collaboration between the Securities and Exchange Commission “SEC” and the Economic and Financial Crimes Commission “EFCC”, confidence is being gradually restored to investors.

In the NASD OTC market, a Complaint Management Framework has been instituted to manage investors' complaints against Trading Institutions in the market as all complaints received by NASD shall be investigated under the direction of the Disciplinary Committee and Board and resolved in a fair and equitable manner.

NASD shall acknowledge complaints received not later than two (2) working days from the date of receipt indicating the next steps in the course of the resolution of the complaint while the decision of the Disciplinary Committee/Board will be communicated formally and promptly to all parties concerned afterwards.

NASD further encourages that investors are free to refer their complaint(s) to the Securities and Exchange Commission where they are dissatisfied with the decision(s) reached as NASD gives no assurances that any action taken by it will result in a payment or return of funds or securities even in cases where disciplinary actions are taken and sanctions imposed.

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