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Stockbrokers screen new representatives for NSE Council

By BusinessNews Staff on June 5, 2014

As the Council of the Nigerian Stock Exchange (NSE) prepares for its annual general meeting (AGM) in June, the Association of Stockbroking Houses (ASHON) has begun the process of getting new representatives on the Council, THISDAY checks have revealed.

ASHON is the umbrella body for owners of stockbroking houses, which are in turn part owners of the NSE. The stockbroking houses, often referred to as dealing member firms, currently have seven representatives on the Council of the NSE.

They firms are: Partnership Securities Limited; Reward Investment and Services Limited; WSTC Financial Services Limited; APT Securities and Funds Limited; City-Code Trust & Investment Limited; ICON Stockbrokers Limited and Stanbic IBTC Stockbrokers Limited.

THISDAY checks revealed these member firms will quit the Council at the AGM coming up in June and new dealing members would be appointed.
Market sources said in order to continue to get a credible representation on the Council, the stockbrokers have started screening those likely to represent them while nominees are already being forwarded for consideration.

“I can confirm to you that some of the candidates were screened last week by ASHON and some of those shortlisted have already been sent to the council for further screening and confirmation,” a stockbroker who was at the screening told THISDAY on Monday.

According to the broker, the stockbroking community takes whoever that will to be on the Council very seriously considering the fact that demutualisation of the NSE is now top on the agenda.

“Anyone who will represent the dealing member firms must, at this point in time, be someone who can trusted because it is a very critical time in the life of the NSE. We are talking about demutualisation and it is a contentious issue that must be tackled well so that nobody will lose out in the process,” the broker added.

The dealing members had in 2012 regained their seats on the Council of the exchange. The dealing members had lost their seats in 2010 when the Securities and Exchange Commission (SEC) intervened in the operations of the NSE, sacking Ndi Okereke-Onyiuke and appointed an interim Council.
SEC had said the appointment of some individuals then was in the interest of the public. However, the individuals, who were seven left in 2012 and the dealing members regained their seats.

The President of the NSE, Aliko Dangote had confirmed in 2012 that “those individuals appointed by SEC in public interest have disengaged from the council.”

Meanwhile, Dangote will be stepping down at forthcoming AGM. Although his tenure is supposed to expire next year, Dangote said his decision to step down was informed by the need for him to focus on his company’s expansion drive in Africa, as this would free him to properly position his varied interests on the continent.

The former Group Managing Director/CEO of Access Bank Plc and First Vice-President of the council, Mr. Aigboje Aig-Imoukhuede is to step in as the new president of the NSE.

[This Day]

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