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Stakeholders List Gains of SEC’s Intervention in NSE

By on April 4, 2011

Some stakeholders have said the intervention of the Securities and Exchange
Commission (SEC) last August has brought positive changes to the market.
This is coming as the Interim Administrator of the Nigerian Stock Exchange
(NSE), Mr. Emmanuel Ikazoboh prepares to hand over the operations of the
Exchange to the Chief Executive Officer (CEO) of the Exchange, Mr. Oscar
Onyeama.
SEC’s intervention in the affairs of the NSE last year led to the
appointment of
Onyeama and other developments that have increased compliance with NSE rules by
operators.
Speaking to THISDAY, stockbrokers and shareholders commended SEC’s action.
Leading stockbroker and Managing Director/Chief Executive Officer of
Partnership  Investment Company Limited, Mr. Victor Ogiemwonyi, said that
interim management, which came into office as a result of the intervention has
executed its mandate and done very well in stabilising and  making positive
policy changes at the Exchange.
He said, “Given the level of entrenched interest and complexities of how
Exchange runs, the experience and insistence on rules by the Interim Management
has helped in pulling  the exchange from the abyss  it was fast sinking.”
Another broker and CEO of Afrinvest (W.A) Limited, Mr. Ike Chioke, said the
management has done a good job, adding once the political environment becomes
more conducive, the market will do better than expected.
“While the current management has done a lot of good work in repairing
the image
of the Exchange, strengthening governance, and making stockbrokers to behave
well and perform, most investors are watching the political environment, and
once that is settled, I see there will be a great of momentum in the market,”
Chioke said.
In the opinion of the Managing Director of Financial Derivatives Company
Limited, Mr. Bismarck Rewane, the intervention has helped the market.
He said, “If they did not intervene, what would have happened, the market would
have been worse off. There may  be some slow recovery at the moment but do not
forget that market recovery is not just regulatory intervention. There
are order
issues that came during the period of the intervention. There is the AMCON
buying toxic assets, there is the controversies trailing the planned
acquisition
of rescued banks and political uncertainty.

“As far as I am concerned the intervention was timely, necessary and has
accomplished what it was set to achieve. And that is restoring sanity and good
governance to the Exchange and the market in general,” Rewane added.
Speaking in the same vein, a founding member of Nigeria Shareholders Solidarity
Association of Nigeria, Alhaji Gbadebo Olatokunbo, said the impact of the
intervention  on the capital market so far is great.
“Okereke-Onyiuke’s era has its merits but the demerits and disaster of that era
were more  pronounced. We should not compare the current repositioning with the
past. But who were those blaming SEC for being proactive(by
intervening). If SEC
does not, who will. There is no free market anywhere in the globe.

“Regulators in the United States do fine-tune rules and regulations, only that
their stakeholders appear to be more law abiding. Therefore, the public knows
little of what goes on behind the scene over there. Here in Nigeria,
we are just
too shameless and hate rehabilitation. But the evil that is not called to order
allows it to spread the virus. Really, it is a pity many of us need brain
rehabilitation,” he said.
In her assessment, the National Secretary, National Co-ordinating Committee of
Shareholders Associations, Mrs. Dewa Thorpe, commended SEC’s action which
produced the interim administration of the Exchange.

“The NSE Administrator has done well. The deference to SEC and the resultant
cooperation is good for the market. It is no longer business as usual.
Companies
that  have failed to meet their listing requirements have been delisted. Having
the courage to sanction under capitalised stockbroking firms is big
icing on the
cake. Policy implementation and enforcement  have  been taken seriously for a
change. Mr. Oyeama should take a cue and build on it,” Thorpe said.

source : Thisday