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NSE moves to curb market infractions

By on March 26, 2014

The Nigerian Stock Exchange has inaugurated the ‘X-Whistle’ initiative to curb the growing issues of market infractions.

This, according to the Exchange, is part of the efforts aimed at strengthening corporate governance, curbing infractions and making the NSE a world-class market.

The General Manager, Legal and Regulation Division, NSE, Mrs. Tinuade Awe, who spoke at a meeting on Monday, said that the X-Whistle initiative was one of the five pillars of the NSE, to make sure that investors’ interest was protected.

She explained that in order to enhance the surveillance in the market, the NSE recently joined the International Surveillance Group with the aim of leveraging global best practices and sharing critical market trend.

According to her, with the introduction of the initiative, investors will be assured of a market with growing integrity and transparency, adding that the X-Whistleblower is a secure, online portal through which information can be disclosed to the exchange.

Awe said, “The portal will permit the person disclosing information, that is, the whistleblower to perform a status check on the matters they have reported on the X-Whistle.

“Consequently, the whistleblower rarely has a personal interest in the outcome of any investigation into violations disclosed. As a result, he is not expected to prove his or her case, rather he or she raises the concern so others can address it.”

She said the initiative was important as it was a mechanism for providing information, which was not available to the Exchange so that the required action could be taken.

“If the Exchange is not aware that violations have occurred, are occurring or about to occur, it cannot take appropriate action, and so, this will ensure that action is taken on information, and this will promote investor confidence in the capital market,” she stated.

Awe explained that earlier, the NSE had implemented reforms, upgraded technology and reviewed (and introduced) rules to ensure better governance and transparency.

She said that initiatives such as the transformation of market operators, review of rules and regulations concerning such as as Annual General Meetings and local and foreign collaboration with regulators would better protect the investments of stakeholders.

Awe explained that the NSE had also strengthened its market surveillance by ensuring daily monitoring of trading activities in the market, and the creation and analysis of alerts for unusual trading behaviour.

She added that the new trade alert system, X-Alert, which was recently introduced by the NSE, provided investors with details of transactions on their accounts via text messages, and serves as an effective fraud alert in cases of unauthorised transactions on accounts.

 

 

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