By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Market Operators mostly Dealing Member Firms Tuesday called for an end to the intervention of Nigeria’s Securities & Exchange Commission (SEC) at the Nation’s Stock Exchange.

This call came on the heels of electing Council Members at the 50^th Annual General Meeting (AGM) of the Nigerian Stock Exchange (NSE) held in Lagos Nigeria.

After a heated argument when a motion in the cause of Ordinary Business of the AGM was raised by Ballama Manu, Interim Head of Council that the previous 10 Council Members following their co-option into Council to fill casual vacancies be automatically elected and retained as Members of the Council in the review period.

Ariyo Olushekun, of Capital Asset Limited Member of the NSE raised an observation that it will be illegal to co-opt members; rather such members should present themselves for election.

Following a heated argument on this by Members of the Exchange, it took the timely consultation and intervention of Oba Otudeko, former President of Council of the NSE with some Members of the Exchange perceived to oppositions to the motion; before a decision was reached and the motion allowed to be passed.

Emeka Madubuike of Compass Investment & Securities Limited after the intervention of Oba Otudeko reluctantly proposed the motion that these Members be elected into the Council of the Nigeria’s Exchange.

According to him, the Exchange belongs to its members and they would not fold their hands and allow things get out of hand. “This Exchange belongs to us, our very lives depend on it and as members, and we do not want to do anything that will bring it down. So, it is on the basis of this fact we have agreed to allow the motion pass” he said.

“I Emeka Madubuike of Compass Investment propose that the following members, Alhaji Bello Maccido, Nsa Harrison, Katsina State Investment & Property Development Company Limited, Partnership Investment Company Limited, Reward Investment & Services Limited, WSTC Financial Services Limited, APT Funds and Securities Limited, City-Code Trust & Investment Limited, ICON Stockbrokers Limited and StanbicIBTC Stockbrokers Limited who were co-opted into the Council, I propose they be elected via a single resolution” he said.

This was seconded by Oladipo Abiodun Aina of Signet Investment & Securities Limited, for the 10 candidates to be elected into the Council of the Nigeria’s Exchange.

In an exclusive chat with www.investadvocateng.com, on the call by members of the Exchange that SEC should end its intervention at the Stock Exchange, Madubuike said that with the current situation at the Exchange, there is very need for SEC to end its intervention.

“If you look at the situation you can reach the conclusion that the Nigeria’s Exchange is sitting on a keg of gun powder. The truth is that as long as SEC doesn’t end its intervention, things will not settle” he said.

“They have done the intervention; the Chief Executive Officer (CEO) is in place they need to leave the Exchange to be independent; that is all we are saying. We are going to meet further to try and resolve it” Madubuike said.

According to him, If a Regulator intervenes, it is not an indefinite thing, there must be a time frame “and we think the time should be now” he said.

In the same vein, Mazi Okechukwu Unegbu, Chief Executive Officer (CEO) of Maxifunds & Securities Limited, said SEC is trying to distort the Exchange, “SEC talks about Corporate Governance being obeyed, they are not obeying it. The Exchange in addition is following them in that route and we say no, there must be a stop” he said.

“We thank God for the presence of Oba Otudeko today, he had already said we are not saying the Exchange should not continue, we are respecting and cooperating with them; but there is a point through which certain laws must be obeyed; the laws of this country; people cannot be disobeying it with impunity and we keep quiet. That is why what happened today happened” Mazi Unegbu said.

He further affirmed that time has come for SEC to end its intervention at the Nation’s Stock Exchange and leave the place to run on its own for investors confidence to be restored.

“Time has come for SEC to end its intervention and leave the Exchange to run and bring back the confidence of investors. It was people outside that are saying what type of Regulator are we having in SEC and NSE; and you expect us to bring in our money; we won’t do that until they know where the Exchange is going” Mazi Unegbu said.

He noted that the governance of the Regulators is what the investors are talking about. “The Regulators keep talking about bringing foreign investors; how can they come when the local investors are not patronising them? You cannot get the foreign investors here when the corporate governance issues are not done properly, when the laws that make things go on fine are not in order” he said.

Mazi Unegbu advised the Regulators in the Nigerian Capital Market to make the Exchange friendly for local investors which will in turn attract foreign investors; instead of the various campaigns mounted for foreign investors to come.

“You must first of all make the Exchange investors friendly for local investors; once these things are in place, you don’t need to mount campaigns for foreign investors to come in, they will see the opportunities and take advantage of it” he said.

In a regulatory move on August 05 2010, Nigeria’s SEC intervened in the management of the Stock Exchange by removing Prof (Mrs.) Ndi Okereke-Onyiuke as Director General (DG) over allegations of financial mismanagement, poor corporate governance and insolvency during her administration.