Fraud: SEC seeks regulatory intervention
On March 14, 2012 · In News
BY MICHAEL EBOH
LAGOS — The Securities and Exchange Commission, SEC, yesterday, called for the strengthening of the country’s regulatory and enforcement machineries to curb the high incidence of fraud in the Nigerian capital market.
Speaking at the public hearing on the capital market organised by the House of Representatives Special Committee on Capital Market and other institutions, Ms. Arunma Oteh, Director General, Securities and Exchange Commission, SEC, said: “We believe that we cannot have a strong market or command investor confidence and public trust if our enforcement machinery is weak.”
She said capital market growth could only be achieved when enforcement actions were taken without fear or favour and without regard for whose ox is gored.
Oteh said the commission was committed towards ensuring zero tolerance for market infractions and indeed any act which could undermine the integrity of the capital market, hence its strict regulatory activities.
She added that the commission had taken various enforcement actions against operators and some publicly-quoted companies, disclosing that between 2010 and 2011, 52 firms were suspended for various violations, while 30 were referred to law enforcement agencies for further actions.
She said: “This excluded the 260 entities and individuals whose cases were taken to the Investment and Securities Tribunal for various violations.”
The commission, according to Oteh, has strengthened its working relationship with law enforcement agencies especially the Federal Ministry of Justice, Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force (NPF).
She expressed confidence that the Nigerian capital market was imbued with the potentials that would engender high investor confidence, market integrity, efficient processes, adequate product offerings, sound regulatory framework among others.
