By Patrick ONOJAinvestadvocate
Jan 11 2011 01.03 GMT
Lagos (INVESTADVOCATE) – The Nigerian Stock exchange (NSE) has reported a 47 percent increase in investors complaints received by it in year 2010.
This was contained in a review of Market performance in 2010 by the Exchange Monday January 10 2011 in Lagos Nigeria.
According to Nigeria’s Exchange, a total of 366 complaints were received in year 2010 compared to 249 received in year 2009 indicating an increase 46.98% in the review period.
Of the complaints in 2010, a total of 291 were against active Dealing Member Firms; while 66 were against non-Dealing Members and nine against inactive Houses; making it a total of 366 complaints.
The NSE affirms that amongst the 366 complaints received, a total of 135 were resolved; while 231 are still being investigated pending resolution.
In the review, the Exchange observed that complaints of unauthorised sales and failure to remit proceeds of sales continue to persist in the Market.
According to the Nigerian Exchange, this can be attributed to illiquidity suffered by the majority of Dealing Member Firms and high loan exposure; coupled with desperate efforts by the Banks to recoup outstanding facilities.
The NSE also affirmed that it was observed that some Dealing Member Firms do not comply with Article 102 of the Rules and Regulations Governing Dealing Members as regards to Know Your Client (KYC). ”This has often resulted in fraudulent sales of shares by persons who are not real owners of the shares” the NSE review said.
As earlier reported by investadvocate, Alliance Capital Management Company Limited a Dealing Member of the NSE topped the list of Dealing Firms that committed Capital Market infractions with 26 percent (26%) of these attributed to the company in year 2009.
This was contained in the President’s Statement at the 49thAnnual General Meeting (AGM) of Members of the Nigerian Stock Exchange held Tuesday November 23 2010 in Lagos Nigeria.
Ballama Manu, Interim President of Nigeria’s Exchange had affirmed that complaints against Alliance Capital constituted about 26% of the total complaints handled by the Directorate; which were mostly unresolved because of the suspension of the firm.
It was reported that a total number of 249 unresolved complaints were brought forward from year 2008; mainly from inactive Dealing Member Firms.
Manu affirmed that in year 2009, a total of 374 complaints were received against Dealing Member Firms; out of which 268 complaints were resolved; while 106 are still being investigated pending resolution.
