Shareholders laud SEC zero tolerance on infraction

Shareholders have commended the leadership of the Securities and Exchange Commission (SEC) on their efforts to abolish infraction from capital market.

Speaking with Daily Trust on suspension of BGL Group and Cowry Asset Management by the SEC, a shareholder Mr. Abiodun Olatunde said SEC decision countermand investors fear from capital market.

According to him, the only way to grow the Nigerian capital market is for regulator to take a positive position to protect investors’ interest.

He stressed that investors would not have interest in market where there is infraction, saying SEC of today is playing its primary role as apex regulator in capital market.

If SEC refuses to protect our investment in the market there is no way we will invest there, he said.

Also in his own, another shareholder Mr. Mathew Benjamin said, what investors need at this critical period is regulator support.

He said suspension of BGL Group and Cowry Asset Management is a sign of relief to shareholders.

He noted that if SEC can continue with zero tolerance of infraction in the market, local and foreign investors would find their way back to the market.

SEC had in May this year announced suspension of BGL Plc and its sponsored individuals from all capital market activities.

The commission’s Executive Management Committee had taken the decision after considering the report of a detailed investigation into various complaints received from investors against subsidiaries of BGL Group.

Specifically, it was decided that BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited be suspended from all capital market activities.

However, SEC smashed indefinite suspension on Cowry Asset Management last week.

Nigeria’s apex capital market regulator said it has suspended Cowry Asset Management Limited and its sponsored individuals from issuing house functions.