The House of Representatives has queried the Nigerian Stock Exchange (NSE), over the nomination of four of its members to its council by the Security and Exchange? Commission (SEC).
The House of Representatives Ad hoc Committee on Capital Market made this known in Abuja on Monday.
Rep. Yakubu Dogara (PDP-Bauchi), a member of the committee had observed that the nomination of four members to the eight-member council by SEC would influence policy decisions of the exchange.
He said that it was out of place for SEC as a regulator to nominate members into the council.
In his response, the Director-General of the NSE, Mr Oscar Onyema, said that SEC took that decision because of the crisis in the market then.
Onyema attributed the crisis in the market to inadequate regulatory policies and weak corporate governance.
He noted that there were inadequate rules and regulations in place to guide the operations of the market before the 2008 crash.
He stressed the need for the restoration of stakeholders’ confidence as it is necessary for the active participation of investors in the market.
Onyema said that majority of activities of the exchange were being driven by foreign investors.
He called on the National Assembly to review the PENCOM and Local Content Acts to encourage listing of more companies on the market.
According to him, the exchange has put in place sanctions ranging from fines, suspension and de-listing of investors from the market for unethical practices.
Rep. Ibrahim El-Sudi (PDP-Taraba), the Chairman of the committee directed the NSE to submit to the committee, bank statement of Investment Protection Fund.
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