By Peter OBIORA investadvocate

Dec 09 2010 16.22 GMT

Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) will henceforth ascertain the integrity qualification of Directors of listed companies.

 

Emmanuel Ikazoboh, Interim Administrator of the NSE made this affirmation Thursday December 09 2010 in Lagos Nigeria at the Triennial Conference of the Independent Shareholders Association of Nigeria (ISAN).

 

He affirmed that apart from companies making available their financials to the Stock Exchange, the issue of Corporate Governance must also be considered.

 

Ikazoboh said that integrity qualification is one of the things the Council of the Exchange is going to be looking at henceforth and conduct a background check on them.

 

According to him, the NSE would want to know and ascertain the integrity of those on the Board of quoted companies at the Nation’s Stock Exchange.

 

“That takes me to good corporate governance, it is not only enough to send financial statements, we would also want to know those behind that are managing these entities. If you have in a company, a person you are not really sure of his integrity, you have to think twice even the figures you are receiving from that company is what you rely upon” Ikazoboh said.

“That is the only way you are going to ensure that there would be true and correct information coming out from those entities which the Market would have to use in determining the price of their shares” he said.

 

He further affirmed that when the current administration came in, they decided that any company that has not sent in its returns would be suspended.

 

“We decided that any company that has not sent in its returns and ensure that they have full and adequate disclosure of all information that would be required to give us the full fundamentals of their operations will be suspended” he said.

 

Ikazoboh said the Nigeria’s Exchange do not want to be a Stock Exchange that has companies that just want to be listed and do things the way they like. “And that is why we started the threat of delisting companies” he affirmed.

 

“They reason we had to take such hard decisions was because we needed to protect you the shareholders. You buy shares at certain prices that are not worth the price you were asked to buy them. If we had adequate disclosure and we had all the fundamentals disclosed to the Market, a fair price will be put on those shares, and we are very serious about that and will ensure that we have a capacity to analyse the financials that was sent in and dispatch same to the companies that sent them; so that financial analysts will now make full and informed decision as to the shares of the companies” Ikazoboh said.

 

The NSE’s Interim Administrator said that it is true that the Nation’s Stock Exchange need to improve on its surveillance, “we need to get full information; not only in waiting for the company to send this information to us, but we should also go out to know exactly what is going on” he affirmed.

 

On the issue of collaboration between the NSE, Securities and Exchange Commission (SEC) and other Regulatory Agencies, he affirmed that it is a thing that is lagging behind.

 

He confirmed that the Central Bank of Nigeria (CBN) and the Nigerian Accounting Standard Board (NASB) has set up a body to meet monthly and harmonise policies as regards regulations of financial disclosures.

 

“However, we have a body now which ensures that all Regulatory Bodies meet every month to strive and harmonise policies; this was the initiative of the CBN and NASB, this I think is working well now. I am sure the effect of the decision of that body will not be felt immediately; but I can assure you that with time, the policy would be harmonised and so many issues regarding regulation at the Capital Market would be addressed” he said.