By Gbenga Agbana

Friday, 10 Dec 2010

The Investments and Securities Tribunal will begin sitting from Tuesday to Thursday next week on the cases involving 260 entities and individuals accused of involvement in capital market infractions, the Manager of the Lagos Zone of the IST, Mrs. Uyi Madegbelo, has said.

Madegbelo, who spoke with our correspondent on the sidelines of the tri-annual conference of the Independent Shareholders Association of Nigeria, held in Lagos on Thursday, said seven banks and some of their subsidiaries were involved in the infractions, adding that the IST was currently at the pre-hearing stage of their cases.

She said, ”Seven banks are involved and they are the ones rescued by the Central Bank of Nigeria recently. The IST is at the pre-hearing stage. We have not reached the hearing stage. We have a hearing next week Tuesday, Wednesday and Thursday, and sitting begins at 11am.”

The Securities and Exchange Commission had, in August announced that 260 individuals and entities were involved in various market infractions, but initially released only 71 names to the public. After much pressure, it later released 36 other names of those involved in the infractions.

However, as investors await the hearing, shareholders of quoted companies have urged SEC to release the full list of the 260 entities and individuals involved.

Shareholders, who spoke on the issue, stressed the need for the full list to be released on time in order to reassure the investing public that the market is transparent.

The President, Independent Shareholders Association of Nigeria, Chief Sunny Nwosu, said, ”They should release the remaining list immediately. Why are they releasing it in batches? They should release everything. We want to know those involved.”

The President, Ibadan Zone, Shareholders Association, Chief Aderemi Oyepeju, shared Nwosu’s views.

He said, ”They should release the comprehensive list so that we will know all the entities and individuals involved. There should be no official cover-up. It is important to clean the market once and for all.”

SEC had announced that it had dragged 260 entities and individuals, including banks, to the IST for alleged price fixing, share price manipulation, fraud and insider trading.

The Head, Media, SEC, Mr. Lanre Oloyi, had said, ”The ISA Act, 2007 prohibits the employment of any device, scheme or artifice that would operate as a fraud or deceit on any person in connection with the purchase or sale of securities,” adding that ”many of the respondents were allegedly engaged in such deceptive and manipulative activities.”

The Vice-Chairman, Afrinvest West Africa Limited, Mr. Godwin Obaseki, said SEC did the right thing by exposing those involved in market abuse, since the ongoing market recovery efforts needed to be sustained through investors‘ confidence.

“What SEC did was in order. We need to sustain investors‘ confidence in this market and it can only be sustained through transparency and honesty,” he said.

Source: Punch