By Okechukwu Nnodim

The Securities and Exchange Commission has called for understanding among stockbrokers on the Nigerian Stock Exchange following a protest by them against the recent appointments into the NSE Council.

The Association of Stockbroking Houses of Nigeria in a letter dated April 13, 2011, faulted the resolution of the commission to allow the former Interim President and the Interim Administrator of the NSE, Mr. Ballama Manu and Emmanuel Ikazoboh respectively, to retain their positions on the Council of the Exchange.

Arguing that only three persons out of the seven members it nominated in November last year to represent the brokers were appointed by SEC, the association in its statement, said, “Our position is that the interim administration has ended with the new CEO. The attempt to perpetuate the continued stay of the interim administrator as deputy to the NSE President is not only illegal, but high- handed.”

Speaking with our correspondent on Friday on the development, the Head, Media, SEC, Mr. Lanre Oloyi, said that the Commission was following stipulated laws guiding the conduct and operations of not only the NSE but also of the capital market.

While calling on the brokers to understand the position of the regulatory body, Oloyi said that the interim administration was to assist the new chief executive officer of the exchange who resumed on April 4, 2011, to place the NSE on a sound footing and strengthen the council.

He said “There are channels of communication especially when issues of these sort are being treated. Stockbrokers should try and understand, and we are also engaging them on this issue you raised. After the series of litigation, the interim administration will see to it that this litigation is dispensed with, and that as you would agree, is for the overall interest of the stock exchange.”

Lauding the inputs of one of the council members, Oloyi noted that his stay, which should be within a month, was to support the restructuring of the NSE and assist in the demutualisation plan of the market.

He said “The Administrator, Mr. Ikazoboh, has done so well on the council and he will remain there pending the election of a new council.

“They are currently working with existing council members to achieve the restructuring of the Exchange in order to ensure good corporate governance, and are to conclude the plans preparing the exchange for its demutualisation including the legal framework,”

Source: Punch