NSE'S GROWING LIST OF DEAL BROKERS

At the Nigerian capital market, there seems to be a growing list of deal brokers more interested in selling clients shares without formal authorisation.

On December 21, for example, the Securities and Exchange Commission of Nigeria (SECNigeria) decided to suspend indefinitely a registered operator, Heritage Capital Markets ltd from all capital market activities in connection with unauthorised sale of shares belonging to investors and for refusing to comply with the commission's directives on the issue.

In September, SEC Nigeria banned and blacklisted Mr Taofik Lawal and Mrs Iyabode of WT securities ltd for unauthorised sale of Nigerian Breweries shares belonging to an investor and for mismanaging the funds of another.

Also in 2016, the high profile case of Partnership Investment Company ltd blew open involving an ex-council member of the stock exchange, Victor Ogienwonyi who, without formal authorisation reportedly sold shares of various shareholders.

Much earlier, Alliance Capital Management ltd was deactivated and 1662 share certificates recovered by SEC Nigeria belonging to various investors who were asked to come and collect between April 8 and July 8, this year.

Some other complaints by different investors against some other registered stock brokers are still pending.

Some firms too like BGL group, have been sanctioned by SEC not for unethical sale of investors shares but for engaging in capital market activities or pushing products they were not registered to engage in.

Unfortunately, to make matters worse for the public, the Nigerian stock exchange does not seem to be in a hurry to synchronize its online records about stockbrokers to avoid ignorant public dealing with deactivated or suspended dealers while such executive action subsists.

When Henates visited the NSE sight yesterday and today, Partnership Securities that had since been suspended was still stated as being active. The same with Heritage Capital Markets ltd.

Indeed, earlier this year, SEC Nigeria published the names of 84 capital market operators whose registration were cancelled for being inactive. What Henates found was that some of total of 27 stock dealers on the SEC list were still listed as active online by the stock exchange. Only eleven of them were found on the list of 22 SEC deactivated dealers to date.

Of course, that the Exchange and SEC now have sites the public can easily access for updates on any aspect of the market is a major plus for continued investor confidence but then, more still needs to be done to keep stakeholders updated on registered market operators who opt to be deal brokers instead of being just stockbrokers and fund managers for which they were registered.




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