By Peter OBIORA InvestAdvocate

Ijebu-Ode (INVESTADVOCATE) – 17,800 clients collected Margin Loans from Banks, Reports has indicated.

Tunde Adeyemi, Financial Analyst and the Managing Director (MD) of DHTL made this affirmation Sunday in Ijebu-Ode Ogun State; South West Nigeria at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2011 Workshop organised for Capital Market Journalist.

According to him, more clients collected Margin Loans than the Stockbroking Firms from Reports available from the Banks.

“In fact more clients collected Margins than Stockbrokers from the Reports made available by the Banks. 17, 800 clients collected money as Margin Loan; but at that particular point, we only have just 274 Stockbrokers that collected Margin; out of these only 85 could not come out of it; others were able to resolve it irrespective of what it took; this is because they were not used to that particular scenario before now” Adeyemi said.

He affirmed that the problem of the Economic and Financial Crime Commission (EFCC) in resolving the allegations against Stockbroking firms on the issue of Margin Loans obtained from the Banks started when Sanus Lamido Sanusi, current Governor of the Central Bank of Nigeria (CBN) called on Banks to publish the names of debtors on their list.

“The issue of EFCC mainly with the Stockbrokers started when the current CBN Governor came up and said every bank should publish the names of those who owed them money” Adeyemi affirmed.

He said that no opportunity was given to the Stockbrokers to resolve the issue.

“They don’t want to give us the room to discuss; we requested they should hold on before selling the stocks in their custody. We too invested investors people’s 30% in the business; then the CBN directed them that every single stock should be sold. With this approach, how do they want us to make money? For instance some shares we bought at certain prices have drastically reduced; may be a share of N44.00 is now trading at N13.00. We know the price will surely go up again and they are saying no. They don’t even want the 70% they contributed; but the total money” Adeyemi said.

“We requested the Banks to handle the issue properly; borrowing money is not a criminal offence, in this case, we were in partnership that is what the Offer Letter said. This is the reason, the case still lingers at the EFCC; all that is needed to be done is for the EFCC to call a meeting and we discuss, like I said earlier is a partnership. These are civil cases and that is why the Capital Market will not rebound; until the issue is settled” he said.

As at the time of filling in this report, www.investadvocateng.com could not ascertain the total amount in Margin Loans collected by 17,800 Stockbrokers clients compared to the 274 Firms as affirmed by Adeyemi.

This years CAMCAN workshop came with the theme “Sustaining the Stock Market Recovery”.