NSE strengthens surveillance over market infractions IN a bid to reduce fraudulent practices to the barest minimum, the Nigerian Stock Exchange has created a market surveillance unit, under the Listings Regulations Department to effectively monitor market activities in order to identify unusual patterns and market conditions that may indicate any violation of rules and regulations governing the capital market. Besides, the Exchange has announced plans to launch whistle blowing portals, that would give the people a platform to reveal to the Exchange, information on issues and activities that is detrimental to the market. The unit has the responsibility to protect capital market integrity from fraud, manipulations and abuses, as well as foster open, competitive and financially sound market. Addressing journalists during the X-Complaince Training in Lagos yesterday, the Head, Market Surveillance of the Exchange, Abimbola Babalola said the unit would help the Exchange achieve its objective of efficiency, fairness, liquidity and intelligent gathering. According to him, ”our job is to translate the trading rules into trading variables, metrics and set meaningful benchmarks for the market. Again, We would achieve this by defining and creating alerts, after which we analyse these alerts to detect unusual trading behaviours that would enhance proper surveillance reports on daily basis. “We would also conduct detailed investigations and generate evidence of market abuse. The Head, Listing Analysis of the Exchange, Elochukwu Uba, explained that the Exchange has put facility in place what would help monitor unauthorized sale of investors’ shares in the market, adding that this is one of the major infractions the Exchange intends to ensure that it is put to stop. “We have listed all the firms involved in this activity in the time past on our website and the type of punishment received. The minimum capital requirement for a broker dealer is N70 million. Again, as part of the market-making scheme, if you want to be an equity market maker, the minimum capital requirement is N500million net liquid asset, as well as the normal N70million broker dealer pay. “Fixed income market makers are yet to be introduced and the minimum requirement for this is N500 million in equity, N500 million in fixed income and the N70 million broker dealer arrangement.” The Head, Listings Compliance, Listing Regulations Department of the Exchange, Hauwa Zoaka, explained that the Exchange has introduced penalties for late submission of company financials, adding that going forward, the Exchange would not accept company results where companies release its result and corporate actions separate, adding that it sends negative signals to stakeholders. Source: dunnlorenmerrifield