Begin amendment of investment and securities act
Following alleged breaches in the nation’s capital market,
the House of Representatives Committee on Capital Market and Institutions
yesterday, quizzed th
e Central Bank of Nigeria (CBN), Pensions Commission
(PenCom) and Debt Management Office (DMO) to determine their efforts in the
protection of shareholders’ investments.
Chairman of the House committee, Tajudeen Yusuf, said the
exercise was in response to complaints of irregularities and reports indicating
that “whilst some of the companies took advantage of investors naivety, others
were involved in outright sleeze and scam. “
At the opening of a two-day hearing of the committee on
bonds, securities and private placements between 2001 and 2016 and Bill for an
Act to amend the Investments and Securities Act, 2007, Yusuf requested
officials of the invited organizations to synergize towards restoring
investors’ confidence in the capital market.
PenCom’s representative, Ibrahim Kangiya said the commission
has instituted measures towards protecting pensions funds, assuring that,
though there were still hitches, appreciable success was being expected soon.
Representative of DMO, Joe Ugoala, said its continued
collaboration with the Securities and Exchange Commission (SEC), was yielding
fruits in private placements and funds management.
To broaden the horizon for discourse, the committee requested
all stakeholders to furnish it with additional documents that would reflect
current measures of addressing the issues. The documents, the committee
chairman said, should reach the committee secretariat on or before December 8,
2017.
He further promised to call in Corporate Affairs Commission
(CAC), Association of Stockbrokers and relevant issuing houses to determine the
status and viability of companies listed in the stock market.
On the amendment of the Investments and Securities Act, Yusuf
expressed confidence that the reviews would help in the proper identification
of officials of government expected to access the capital market.
Edward Pwajok (APC, Plateau) specifically identified sections
224, 226 and 273 of the act that require amendment.“The amendment of these
sections, when carried out, would help deepen democracy. It will also provide
for only elected officials, not caretakers to access funds in the capital
market, “ he said.
Acting Director General, Securities and Exchange Commission
(SEC), Dr. Abdul Zubair, restated the efforts of the Commission in instituting
monitoring mechanisms for enthroning transparency in the market.
Speaker of the House, Yakubu Dogara lamented ugly
developments in the sector. He said, “owing to sharp practices and professional
misconduct by some practitioners and stakeholders during the wide scale public
placement investment drive during the period under review, many Nigerians who
participated in this exercise got their fingers burnt.
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