SEC prosecutes 260 stock market offenders
National News Aug 11, 2010By Luka Binniyat
ABUJA — Director General of the Securities and Exchange Commission, SEC, Ms Arunma Oteh, yesterday, said the commission was prosecuting 260 persons for various offences in the Nigerian Stock market.
Oteh made this known at public investigation hearing concerning recent development in the capital market, organised by the House of Representatives Committee on Capital Market.
She said the accused person had been dragged to court as a result of flurry of petitions and allegations of fraudulent activities that SEC received against them, adding: “We are prosecuting them as corporate organisations and as individuals for insider trading, share manipulation and sundry offences.”
She lamented that as a result of weak enforcement of regulations in the past, coupled with other avoidable factors, capitalisation level of the market dropped from N12 trillion in 2008 to N5.5 trillion today.
“There are about seven million investors involved in this fragile market, and they have little confidence in it,” she said.
Oteh said past managers of the capital market had engaged in risky behaviours by taking margin loans under a situation where the bodies regulating the market were unable to coordinate themselves for effectiveness.
She told the Reps that Capital market did not have the length, breath and depth of a standard market, but that SEC was already addressing the situation.
She added that the Commission was already re-organising bond issuance in Nigeria by forming the Nigerian Bond Market.
The SEC boss said: “We are forming a world class Sovereign Bond Market so that states or corporate bonds can be priced at reduced risk,” noting that the bond market was very crucial if Nigeria must meet its basic infrastructural requirements that would lead to development.
“The SEC has a great sense of responsibility and our primary concern is the integrity of the market and the protection of the interests of the investors,” she said.
She said part of the actions taken at sanitising the market was the sack of some key officers of the Nigerian Stock Exchange, and the launching of investigation into alleged sharp dealings by the dissolved council of the NSE.
She introduced the new people on the helms of affairs of the NSE, saying they were all in acting capacity.
They are Mr. Emmanuel Ikazoboh who is now Interim Administrator and would fill in the role of the Chief Executive Officer of the NSE and Mr. Bullama Manu, Interim Head of the Council.
Sacked D-G of NSE, Professor Ndi Okereke-Onyiuke and sacked President of the Exchange, Alhaji Aliko Dangote, would take their turn today with the Committee.
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