NSE wields stick, revokes member’s license over infractions
The Nigerian Stock Exchange (NSE) has expelled and revoked the license of a dealing member firm, Bytofel Securities and Investment Limited.
The Exchange also fined the firm a sum of N582.4 million for unauthorized sales of clients’ shares and misappropriation of client’s funds.
The NSE in a circular dated, 31 July, 2017, and obtained by our correspondent titled: “Disciplinary actions against a dealing member firm and authorized dealing clerk of the Exchange” was signed by Olufemi Shobanjo, Head, Broker Dealer Regular, who advised that dealing members are not to engage in any activity with the above-mentioned firm.
The circular, which notified all member firms of the action taken by the National Council of the Exchange also revealed that a dealing clerk named, Mr. Teslim Abioye has been suspended from trading for a period of six months for unauthorized transactions that occurred during his employment in Fittco Securities Limited.
Shobanjo said, “All Authorized Clerks and employees of dealing member firms are strongly advised against allowing themselves to be used in carrying out activities that are capable of affecting the integrity of the market.
“Furthermore, Dealing Members are also reminded that Rule 6.12: Specific Actions Requiring Prior Consent of The Exchange, Rulebook of The Exchange, 2015 (Dealing Members’ Rules), which states that “a Dealing Member shall not be allowed to Employ any of the following: A. Directors, Authorized Clerks or other persons, including Principal Officers, such as the Chief Executive Officer, Chief Finance Officer, Chief Compliance Officer and Chief Risk Officer, who have been indicted by The Exchange or the Commission, without the prior written consent of The Exchange.
The exchange also ruled out the employment of any person who was an officer or employee of a Dealing Member expelled from The Exchange.
Other persons not to be employed by dealing member firms without consent from the Exchange include, “Any person expelled, as an Authorized Clerk or its equivalent, from any other exchange; Any person refused admission as a member of the Chartered Institute of Stockbrokers or any person expelled from its membership; Any person expelled as a member of any Professional Association or Institute; Any person who is insolvent or has been convicted of theft, fraud, forgery, or any other crime involving dishonesty”.
