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NSE expels Gosord, Lakesworth for market infractions

By on November 12, 2014

The Nigerian Stock Exchange (NSE) has  expelled  Gosord Securities Limited and Lakesworth Investment & Securities Limited, two of its  dealing members and revoked their licenses.

According to the NSE, the action  followed infractions involving unauthorised sale of clients’ shares contrary to the rules and regulations governing dealing members of  the exchange.

Speaking on the development,  Head, Legal and Regulation Division,  NSE, Ms. Tinuade Awe,  said the action  is in line with  line with exchange’s zero tolerance policy on regulatory infractions.

“NSE is committed to restoring investor confidence in the Nigerian capital market. NSE will not hesitate to bring the full weight of its regulatory powers to bear on any dealing member that commits regulatory infractions and does not take steps to address them as appropriate even after being given sufficient time to do so,” Awe said.

She explained that of all the penalties, expulsion and revocation of dealing license is usually viewed as a last resort where a dealing member fails to engage in conduct to rectify wrong doing or comply with the directives of the NSE council.

According to her, the exchange  received several complaints of unauthorised sale of clients’ shares against Gosord and Lakesworth, adding  both firms  breached  Article 59(v) of the Rules and Regulations Governing dealing members of NSE.

The two dealing members failed to buy back the client’s shares and resolve all complaints against them  as directed by the Disciplinary Committee.

The NSE, which said the  expulsion takes immediate effect and all rights, incidences and privileges of membership automatically have  ceased, warned members of the public not to with  the expelled firms in relation to any transactions on  exchange.

 

[ThisDay]