Operators in the Nigerian capital market as well as stockbrokers have called on capital market regulators to expedite action on the trial of those found culpable in the N90bn fraud recorded in the market a few years ago.

Specifically, the operators said that the case had to be urgently looked into by the Investment and Securities Tribunal to avoid a situation where it would drag the market down.

A newspaper report (not The Punch) had stated on Monday that bank, stockbroking firms and registrars accused of committing or aiding insider fraud running into billions of naira and other sharp practices in their organisations were to be brought to book by the Federal Government.

It added that the Securities and Exchange Commission was pushing the prosecution of the suspects, as their nefarious activities, which were allegedly committed between 2006 and 2008, largely contributed to the collapse of the capital market.

It was learnt that 28 cases would be heard by the tribunal, which began sitting this week at its Enugu zonal office, where the firms, registrars and individuals would be arraigned for alleged insider dealings, manipulations and fraudulent transactions.

However, brokers who spoke to our correspondent on Monday agreed that speedy actions by the tribunal was essential so that activities in the equities market, which had been recording steady improvement in the past few weeks would not be affected.

The Chairman, Association of Stockbroking Houses of Nigeria, Mr. Emeka Madubuike, said that the tribunal had to do its duties to avoid negative signals in the market.

He said, “The tribunal should do its job, because the case in question is an issue that came up more than four years ago and up till now there has been delayed resolution. The IST is a tribunal that was brought about for issues like this, so I believe they should be made to do their duties.

“It is important that this issue be addressed promptly once and for all, to avoid a situation where this would again affect our equities market as it did in the past. It is an issue that is capable of destroying investors’ confidence, therefore, it has to be treated expeditiously.”

He said that as an important part of the conflict resolution section of the market, the IST was supposed to resolve such cases as its integral function, stating that there was no justification for the issue to be dragged for long.

Another stockbroker, Mr. Bunmi Jacobs, said that it was important that those cases were brought to a close on time, so that the regulators could concentrate on their major function of building the market.

He added that it was important that all was done to sustain the current growth that the market had been witnessing in the last few weeks.

Source: Punch/Udeme Ekwere