By Udeme Ekwere

Tuesday, 23 Nov 2010

Capital market regulators have been urged to monitor the activities of quoted companies to ensure that they maintain post-listing requirements.

According to experts, this is because of inconsistencies in capital market operations in the past few months.

Shareholders, who spoke to our correspondent, also noted that if this was done, there would be reduced losses.

The Chairman, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, told our correspondent on Friday, that the regulators, including the Securities and Exchange Commission and Nigerian Stock Exchange must ensure that shareholders‘ investments were protected.

According to him, companies that are not fulfilling their promises to shareholders should be penalised by the regulators.

He said, ”It is not enough that these companies are listed on the NSE. The activities of the regulators go beyond just pre-listing and listing of companies, there should also be periodic checks and inspections by the regulators to the site of these companies, to see how they are performing and ensure that the companies stick to the rules governing their activities.”

While commending the NSE on its recent efforts towards penalising companies that had been involved in various market infractions, Okezie noted that more needed to be done in this regard to dissuade other defaulters.

According to him, ”It is important that the regulators visit companies from time to time, so that they can have a feel of what is going on there, and be able to see the performance of the companies first hand. Also, the fact that a few companies have not been presenting their results to the NSE for years should bring more concern to the NSE, because it means that the companies have some things to hide.

”This is why some quoted companies are dying under their watch. If a company does not conduct annual general meetings for about four years, it is the duty of the regulators to write to the company and find out why, because it compulsory for companies to conduct annual general meetings.”

The Interim Administrator of the NSE, Mr. Emmanuel Ikazabor, said recently that the Exchange would come down hard on quoted companies that did not submit their financial statements.

According to him, this is in the NSE‘s continued attempt to ensure that listed companies adhere strictly to all rules regarding their operations, and promote increased investor-confidence in the market.

Source: Punch