The Nigerian Stock Exchange (NSE) on Monday revoked the dealing licences of Gosord Securities Ltd (Gosord), and Lakesworth Investment and Securities Ltd, for market infractions.
This is contained in a statement issued by the exchange and obtained by the News Agency of Nigeria (NAN) in Lagos.
It said that the dealing licences of both firms were revoked for regulatory infractions involving unauthorised sale of clients’ shares.
The statement said that both firms had been expelled from all capital market transactions with immediate effect.
The exchange stated that the conduct was contrary to the rules and regulations governing Dealing members.
“The National Council, after considering the documents relating to each firm and giving each firm an opportunity to be heard, reached the decision to expel both firms and revoke their dealing licenses,” it said.
The statement said that the National Council acted under powers conferred on it by the Memorandum and Articles of Association of The Exchange (“MEMART”), and the Rules and Regulations Governing Dealing Members.
“The general public should not deal with the expelled firms in relation to any transactions on the NSE.
“Investors who hold stockbroking accounts in Gosord or Lakesworth should transfer their stocks to any active licensed stockbroking firm that is a dealing member of the NSE,” the statement said.
Speaking on the development, Ms Tinuade Awe, NSE’s Head, Legal and Regulation Division, said that the exchange was committed at restoring investor confidence.
Awe said that the exchange would not hesitate to bring the full weight of its regulatory powers to bear on any dealing member that commit regulatory infractions.
She said that expulsion and revocation of dealing license was viewed as a last resort, where a dealing member failed to engage in conduct to rectify wrong doing or comply with the directives of the national council.
Awe said that the NSE received several complaints of unauthorised sale of clients’ shares against Gosord, which she said, breached Article 59 (v) of the Rules and Regulations Governing Dealing members.
She said that Gosord failed to buy back the clients’ shares and resolve complaints against it, as directed by the disciplinary committee decision approved by the national council.
Awe noted that the NSE received one complaint of unauthorised sale of a client’s shares against Lakesworth, which it failed to buy back, as resolved by the disciplinary committee. (NAN)
Source : Leadership