By Dipo Olowookere
For allegedly selling shares belonging to investors without their consents, the Nigerian Stock Exchange (NSE) has blacklisted a stockbroker, Mr Uduma Arunsi.
Mr Arunsi is an executive director of Royal Trust Securities Limited, one of the brokerage companies approved by the exchange to trade shares in Nigeria. He is also a non-executive director on the board of Multiverse Mining & Exploration Plc.
In a notice sighted by Business Post on Monday, the exchange said Mr Arunsi was also involved in misconduct and was punished for that.
He was not the only stockbroker sanctioned and blacklisted from the exchange as the former Compliance Officer of Dominion Trust Limited, Mr Adewale Ogunbanwo, was asked to stay away from the market for alleged misconduct and fraudulent activities.
The investing community has been advised to avoid doing business with the two persons as they have been banished from the market in line with the provisions of Rule 1.24: Definitions, Rulebook of the exchange 2015, which is fondly called the dealing members’ rules.
“Mr Adewale Ogunbanwo (former Compliance Officer for Dominion Trust Limited) has been blacklisted by the exchange for misconduct and fraudulent activities.
“Mr Uduma Arunsi (Executive Director, Royal Trust Securities Limited) has been blacklisted by the exchange for misconduct and unauthorised sales of clients’ shares,” a part of the notice stated.
The exchange further stated in the disclosure that, “dealing members are advised not to engage in any activity with the above-mentioned individuals.”
The NSE, which regulates activities of the stock market, regularly sanctions erring listed companies, stockbrokers and others so as to boost the confidence of investors.
As a result of the blacklisting, Mr Aunsi and Mr Ogunbawo will not be allowed to work with any brokerage firms without the approval of the NSE. This is in line with the provisions of Rule 6.13.
The rule states inter alia that “a dealing member shall not be allowed to do any of the following without the prior written consent of the exchange: employ any of the following: (A) directors, authorised clerks or other persons including principal officers such as the Chief Executive Officer, Chief Finance Officer, Chief Compliance Officer and Chief Risk Officer, who have been indicted by the exchange or the commission. (B) any person who was an officer or employee of a dealing member expelled from the exchange; (C) any person expelled, as an authorised clerk or its equivalent, from any other exchange; (D) any person refused admission as a member of the Chartered Institute of Stockbrokers or any person expelled from its membership; (E) any person expelled as a member of any professional association or institute; (F) any person who is insolvent or has been convicted.”
