By Gbenga Agbana and Udeme Ekwere

Thursday, 20 Jan 2011

The management of the Nigerian Stock Exchange on Wednesday released the list of companies suspended from trading on Tuesday, over inadequate shareholders’ funds.

The list, which contained 57 names was posted on the official website of the NSE on Wednesday.

A statement attached to the list said, “We have today(Tuesday), suspended the following stockbroking firms for failing to meet the statutory equity capital requirement.”

Among the companies suspended are, Adamawa Securities Limited, Afrinvest West Africa Limited, BGL Securities Limited, Century Securities Limited, Cowry Asset Management Limited, Diamond Securities Limited, First Inland Securities Limited, FIS Securities Limited, Nigerian Stockbrokers Limited, UBA Stockbrokers Limited, Vision Trust and Investment Limited, Pivot Trust and Investment Company Limited, Sigma Securities Limited and Eurocomm Securities Limited.

Some of the suspended firms responded to the development on Wednesday, noting that they were making arrangements to meet the requirements of the NSE.

For instance, the management of BGL Securities Limited, said, “We were taken by surprise as we had earlier taken steps to meet the requirements stated by the Nigerian Stock Exchange. We are currently working with the Stock Exchange to update their records and are confident that this matter will be resolved within the next 24 hours.”

Also, a source at the United Bank for Africa Plc, who will not want to be named, told our correspondent that UBA Stockbrokers Limited, had stopped trading on the floors of the NSE before the suspension, since it had already applied officially to the Exchange to join the holding company of the bank.

The application, according to the source, was sequel to an earlier directive by the Central Bank of Nigeria, to banks on universal banking.

The source said, “The company has applied to the NSE. When we said we are not doing universal banking again, we applied to withdraw from trading on the NSE, pending the take-off of the holding company, which the stockbroking arm will become part of.”

The spokesperson of Finbank, Mr. Barnabas Eke, also said, “Finbank Securities had raised additional capital, which was at the point of being registered before the suspension was pronounced.”

 

Source: Punch