NSE, CSCS shun SEC directives on 10 % remittance to tribunal

THE Nigerian Stock Exchange (NSE) and Central Securities Clearing System (CSCS) have failed to comply with remittance of 10% of their secondary market income to the Investments and Securities Tribunal (IST) five months after been directed to do so by the Securities and Exchange Commission (SEC).

SEC  recently under the leadership of the immediate past Director – General  ordered that remittance should commence within five working days but despite several reminders to the two institutions by SEC, both NSE and CSCS have deliberately refused to comply with the directive.

SEC said, in a letter to the two institutions directing compliance, that failure to do so will attract enforcement action.

It would be recalled that the acting Director General of the SEC, Mr. Mounir Gwarzo when he assumed duty resolved to ensure discipline in the market and that all participants must adhere to the provisions of the relevant rules and regulations in the market.

The Investment and Securities Tribunal was established by Section 274 of the Investments and Securities Act (IST) 2007 and has jurisdiction to hear and determine any question of law or dispute involving capital market participants.

Some of the roles it plays in resolving disputes include dispute between capital market operators and securities exchanges or capital trade point, dispute between capital market operators and dispute between capital market operators and their clients.