NSE Bars Stockbrokers, Others from Capital Market for Fraud
By Dipo Olowookere
No fewer than 33 stockbrokers, accountants, directors, compliance officers, registrar and information and technology specialists among others have been blacklisted by the Nigerian Stock Exchange (NSE).
The affected persons were found guilty of going against rules governing the Nigerian capital market.
Most of the affected persons committed various crimes ranging from unauthorised sale of clients’ shares, diversion of funds, professional misconduct and aiding and abetting criminal activities.
A breakdown showed that stockbrokers were more than half of the blacklisted persons while compliance officers also featured prominently.
The NSE, through its Disciplinary Committee and Securities and Exchange Commission (SEC), through its Administrative Proceedings Committee (APC) run an active investigative mechanism that seeks to uncover malpractices, sanctions indicted operators and restitutes affected investors.
To be included in the “blacklist”, the Exchange must have established a prima facie case and indicted such persons.
Any blacklisted person shall no longer be entitled to privileges, services, recognition or access to the Exchange and its facilities. Such a person also shall not be permitted to deal or transact with or be employed by a dealing member or person.
The “blacklist” rule applies to all dealing member, an authorised clerk, an employee or director of a dealing member, a sub-broker, or any other capital market operator.
According to the rules, any person blacklisted by the Exchange may however apply to the Exchange for reinstatement after the expiration of the blacklisting period imposed by the Exchange; or where the blacklisting is not for life, a reasonable period has elapsed where no period is specified by the Exchange.
Any person applying for removal from the blacklisting and reinstatement into the capital market must “provide compelling reasons” in support of his or her application.
In December 2018, the Nation had reported that the Exchange had amended its rules to enable it open a “blacklist” for recording corrupt persons. The amendment was approved by the Securities and Exchange Commission (SEC) in December, last year.