₦airaland Forum

Aktopgun,
Na some silent psychiatric doctors were dey read ur post online dey die to meet you o.
Union Homes appears to be approaching a re-entry point.I did a quick CICO on it early this month.Bought at 7.70k and sold at 9.40k in one week.I am eyeing it again for some quick CICO.Maybe this time it will get to 10 naira as end of year results are expected soon.

Aktopgun,can you email me at bluebanduk@yahoo.com

I need to find out some stuff from you.

TRANSCORP: Resign Now, House Tells Ndi Onyiuke- Okereke
The House of R e p r e s e n t a t i v e s Monday directed the Director-General of Nigeria Stock Exchange (NSE), Dr. Ndi Onyiuke-Okereke to resign as Chairman of Transnational Corporation (TRANSCORP).

The Chairman of the Committee, Ahamed Wadada told newsmen Monday in Abuja that the directive was to allow for a transparent investigation into the activities of TRANSCORP by the committee.

``The DG NSE must relinquish her position as TRANSCORP chairman to pave way for a transparent and successful investigation of the corporation'', Wadada stressed.

He said TRANSCORP was under the searchlight of the committee for its contradictory claims on the parentage of share subscription during its last Initial Public Offer (IPO). Another area to be investigated by the committee, he said, was the status of TRANSCORP shareholders funds, which he said, ``nobody knows their where about''.

He explained that Onyiuke-Okereke, was not asked to resign based on incompetency or fraud, but on moral ground, as she was the custodian of the nation's Capital Market where TRANSCORP was listed.

Wadada commended the revocation of the sales of NITEL to TRANSCORP by the Federal Government, saying it had confirmed the stand of the Committee and the House that the deal lacked transparency. He expressed the readiness of the Committee to sanitize the nation's Capital Market through legislation and oversight.

Greg Okey Nwadike, Abuja.

Gave my good broker order to load more ABC tomorrow.My problem is whether I will find it to buy.Because of the deep silent pockets on this thread.

http://thenewsng.com/article/12

Print version
Fund Of Controversy

It was established to assuage the pain of investors who lose money through activities of fraudulent stockbrokers. But the management of Investors Protection Fund by the Nigerian Stock Exchange has been enmeshed in controversies

By Oluokun Ayorinde

In his New Year message to workers of the Securities and Exchange Commission, SEC, its Director-General, Malam Musa Al-Faki, noted that though tremendous growth has been recorded in the Nigerian bourse in recent years, activities of some players in the capital market have continued to constitute a fly in the ointment for it. A group of the players he particularly singled out as engaging in unethical practices are brokers.

Al-Faki revealed that SEC recorded a total of 956 complaints ranging from fraudulent and unauthorised sale of clients’ shares, non-purchase of shares, non-remittance of sale proceeds and illegal conversions to falsification of clients’ accounts. He, therefore, promised that one of the major targets of SEC this year will be to rid the market of such unscrupulous players. But he stopped short of mentioning the total amount lost to such dishonest brokers by investors.

The possibility of investors losing money through dishonest stockbrokers seemed to have been anticipated by drafters of the Investments and Securities Act 1999. Thus, part X11 of the Act establishes the Investors Protection Fund, IPF. As stated in the Act, the Fund is expected to be the property of the Securities Exchange or Capital Trade Point and is to be administered by a governing board specifically set up for this purpose. On sources of funds for the IPF, Section 149 of the Act reads:

“The Investors Protection Fund shall consist of – (a) all moneys paid to the Securities Exchange or Capital Trade Point by member companies in accordance with the provisions of this decree; (b) the interest and profits from time to time accruing from the investment of the Investors Protection Fund; (c). all moneys paid to the Investors Protection Fund by a Securities Exchange or Capital Trade Point; (d) all moneys recovered by or on behalf of the Securities Exchange or Capital Trade Point in the exercise of any right action conferred by this part of this decree (e ) all moneys paid by an insurer pursuant to a contract of insurance or indemnity entered into by the Board and ( f) all other moneys lawfully paid in into the Investors Protection Fund. The funds are expected to be kept in a separate bank account pending their investment or application for the purpose it is meant for.”

On who can access from the Fund, Section 159(1) of the Act states that: “Subject to this part of this decree, an Investors Protection Fund shall be held and applied for the purpose of compensating persons who suffer pecuniary loss from any defalcation committed by a member of company or any of its directors or employees in relation to any money or other property which was entrusted to or received by a member company or any of its directors or employees whether before or after the commencement of this decree in the course of or in connection with the business of the company.” Furthermore, Section 160 (3) of the Act was explicit that “the amount which any claimant should be entitled to claim as compensation from an Investors Protection Fund shall be the amount of the actual pecuniary loss suffered by him (including reasonable cost of disbursement incidental to the making and proving of his claim) less the amount or value of all moneys or other benefits received or receivable by him from any source other than the Fund in reduction of the loss.”

The existence of the funds and the protection it offered investors from the dubious activities of the stockbrokers may, however, be one of the best kept secrets of the Nigerian capital market. Furthermore, the Nigerian Stock Exchange has not at any time published details of the funds in the account. Akintunde Asalu, the late president of the Nigerian Shareholders Solidarity Association, NSSA, had, many times, before his death queried the rationale for the existence of the Fund. He argued that he was not aware of any investor that has benefited from it.

As investigations by this magazine revealed, getting reimbursed from the Fund can as well be likened to the biblical camel trying to pass through the eye of a needle. One victim that had attempted to draw from the Fund was Boat Nigeria Limited, one of the companies defrauded in the famous case against Jenkins Investment Limited. According to details of the case available to this publication, Boat Nigeria Limited had, in January 2006, bought four million shares of First City Monument Bank, FCMB. The company subsequently deposited the shares in the Central Securities Clearing System, CSCS, through its stockbrokers, Jenkins Investment Limited and was issued a slip indicating its stock position in October 2006.

However, the company was to discover during a routine check on CSCS on 24 January 2007 that Jenkins had disposed of the shares without its mandate. Furthermore, the stock position slip earlier given it by Jenkins was also discovered to have been forged. CSCS officials also issued the company a transaction holding which further confirmed that its shares have been disposed off. Staff of Boat Nigeria Limited who visited the Lagos office of Jenkins found the office under lock. Authorities of Boat Nigeria Limited gathered at the Nigerian Stock Exchange that Jenkins had indeed been suspended as a result of its fraudulent activities. The NSE then advised the company to seek redress at the Economic and Financial Crimes Commission, EFCC. However, when several visits to EFCC did not produce the desired result, Boat returned to NSE. Specifically, the company’s lawyers wrote authorities of the NSE and SEC demanding compensation under the IPF. But in its reply, the NSE claimed it was still investigating the fraudulent activities of Jenkins Investment. Boat Nigeria Limited then took its case to the Investment and Securities Tribunal.

In an Originating Application filed by its lawyer, U.M. Yamah & Co. on 11 May 2007 against the NSE and SEC as the first and second respondents, Boat asked the tribunal to make a declaration that it was entitled to be compensated under the Investors Protection Fund and issue an order directing the respondents to compensate it for its entire lost investments being 4,000,000 units of FCMB plc shares at the prevailing rate at the time of judgment and 10 per cent interest rate until total liquidation.

While arguing the case, Boat Nigeria, through its counsel, submitted that “a close perusal of sections 151, 156, 160, 161,162 and 163 of the Investment and Securities Act 1999 showed that an investor could make a claim from the Investors Protection Fund once it is established that defalcation had occurred and the applicant made a demand against the NSE within a period of six months.” Defalcation is defined in page 174 of the ISA as “… the act of defaulting, act of embezzling, failure to meet an obligation, misappropriation of trust funds or money held in any fiduciary capacity and failure to properly account for such funds.” It, therefore, argued that defalcation had occurred and it was entitled to be compensated from the IPF. It also argued it was entitled to be compensated to the tune of N71.2 billion which was the financial value of the four million FCMB shares as at the time of the institution of the case, in accordance with the provisions of sections 165 of ISA.

But in its defence, the NSE asked the IST to dismiss the suit with substantial cost as the Jenkins matter was then still under investigation. On its part, SEC argued it should be excused from the suit as it is not a custodian of the IPF. The tribunal, however, ruled that SEC, as the apex regulatory authority of the capital market and the responsibilities entrusted upon it for the management and disbursement of funds from the IPF, is a necessary party to the suit. In its judgment delivered on 26 September 2007, the nine-man tribunal led by Dr. Nnenna Orji, held that the fact that the NSE-owned CSCS itself confirmed that Boat Nigeria Limited’s shares were sold without authorisation by Jenkins Investment was enough fact to establish that “defalcation” as defined by the ISA had, indeed, occurred and the applicant was entitled to be compensated from the IPF. In the tribunal words: “It is germane to point out that the Investments and Securities Act has provided a safeguard to unnecessary and unauthorised dealings in investors stocks. This is amply evident in the reassuring provisions of the Act concerning the Investors Protection Fund. The claim of the applicant, therefore, succeeds for the reasons adduced above. From the provisions of the Act as stated in the foregoing, it is undoubtedly evident that it is in the place of the tribunal to determine, and of course, using the law as a guide, the extent of compensation due to the claimant on IPF.” Consequently, the tribunal ordered the NSE to pay Boat Nigeria Limited from the IPF the sum of N21.6 million, being the market value of the four million shares as at 24 January 2007 when the fraud was discovered. In addition, the NSE was ordered to pay the applicant five per cent interest from the date the fraud was uncovered till the satisfaction of the claim.

The NSE filed an appeal for stay of execution of the judgment on 29 October 2007. In an appeal filed by the law firm of Uwensuyi – Edosomwan & Co, the NSE asked for a stay of execution on the grounds that if it were to pay the total amount ordered by the tribunal to Boat Nigeria Limited as a compensation, there would not be enough left in the purse of the IPF to pay the other claimants. The NSE also said through its motion on notice that various claims arising from the defalcation by Jenkins Investment alone were about N400 million and arguing it had a duty to apportion available funds among claimants in an equitable manner to meet the competing claims of investors in cases where defalcation has been established.

Counsel to the NSE backed up the claim with a statement of account of the IPF domiciled with Stock Exchange House branch of First Bank of Nigeria plc. According to the statement, the amount standing to the four accounts of the Fund in the bank as at 30 June 2007 are: A/C 2444020002226 containing N25,998,761.01; 2444020002233, N37,769,332.61; 2444020002066, N151, 249,684 and 2444020002189, N228,478,518.69. The NSE filed an appeal which is yet to be heard.

Boat Nigeria Limited is not the only investor that has tried to access money from the IPF. In another case, Chief Livinus Ezemegbe, whose investments valued at N3.7 million was lost through Apex Securities Limited, also instituted an action at the IST against the NSE and SEC demanding compensation out of IPF. However, the NSE and SEC contended at the IST that the IPF was not operational and the applicant cannot benefit from the fund since the guidelines from drawing from it were not yet in place.

But in its judgment delivered on 13 December 2006, the IST rejected this argument. It argued it was the responsibility of the NSE and SEC to put in place guidelines for benefiting from the funds. Consequently, it ordered that the applicant be compensated from the IPF and that the NSE, in collaboration with SEC, should draw up and make public within 90 days necessary guidelines for the implementation of the IPF in line with the provisions of the ISA.

This magazine gathered that consequently, the SEC came up with what it tagged Investors Protection Rules 2007 in which it pegged the maximum amount payable to investors who suffered any form of defalcation to N200,000. As stated in the rules, “the rate of compensation and the maximum compensation payable to an investor who has suffered a loss shall be N200,000, or where the loss is less than N200,000, the investor shall be paid the full amount of the loss.” It was also indicated, though, that the amount be reviewed from time to time.

Based on the new rule, the NSE issued a cheque of only N200,000 to Ezemegbe. But the investor refused to accept the vastly reduced compensation. Ezimegbe’s lawyer also pointed out that the cheque for the N200,000 was raised on Union Bank, whereas the NSE never indicated in the appeal it filed against the judgment of Jenkins Investment that there was an account of IPF domiciled with Union Bank. Ezemegbe is back at the Appeal Tribunal where he is contesting the reduced payment.

Can the NSE on its own make laws that go against the ISA Act? No, argued Eze George Olisaemeka, a stockbroker: “The Investment and Securities Act of 1999 is the relevant law that applies to the capital market. The regulatory bodies are empowered to make rules. But such rules can only be pursuant to the enabling Act which is the ISA and not contrary to it. Therefore, the stipulation of maximum compensation of N200,000 is against express provision of section 163 of the ACT. It’s null and void because the rules of the regulatory bodies cannot override the enabling Act.” Olisaemeka, who contended that the account of IPF had never been published, also argued that if the funds in the pool had been invested, it would have yielded much more than the N400 million the NSE claimed is now in the account of IPF. Ultimately, the court will have to decide the legality or otherwise of the NSE rules.

This magazine gathered that the biggest claim yet from the fund may be the N726 million being claimed in the Ogunlesi A. Johnbosco Vs. NSE & SEC suit yet to be heard by the IST. The investor is claiming the sum of N726 million with interest at 19 per cent per annum to be paid from the IPF as compensation for the unauthorised sale of his shares also by Jenkins Investment Ltd. Would he also be paid only N200,000?

hi pumping,
how did you get your returned money from access?Was it posted to you or you walked into the branch you bought it from, and picked up the cheque?

I mentioned ABC earlier on.E b like the bus don near Sagamu.You can still catch it sha.

Mypeace,
Sorry for the loss.

SEC needs a Ribadu there.Or rather it should be broken into smaller units for effective management.

Mr.Risky are you serious about Sterling Bank?

HAs anyone received their money from Access Bank?Bearing in mind that they clam to have returned over 100billion to investors.

With what AP is doing my mind tells me SEC was right afterall.

Make we leave this issue, please someone should recommend which stock I should buy tomorrow?

Meanwhile,I have not received my FBN returned money.I wrote a letter to the Managing Director of FBN and copied SEC.Someone called me from FBN today that they received my letter and they will DEFINATELY get back to me about my money by next week .So it took a letter to the Bank MD for someone to act.

Since the Sterling BAnk/EcoBank merger has been called off.Do you know when they will be going of TS?

wanaj0:
Do unto others as you want others to do unto you.

But with your spouse, since both of you are ONE, nothing spoil.

Chei.You guys are funny.As the guy no get wife wetin him go do now?

Roughcut,
E b like you dey pour petrol on top this issue!

wanaj0:
How much you wan sell? tell your broker to sell at market. Alternatively sell at a huge discount.

[size=8pt]On a lighter note, if you are married, tell your wife to place a BUY order while you place a SELL order. [/size] That way you will be able to SELL your stocks.

Seriously, that is the risk of BUYING illiquid stocks except you are willing to hold on for the long run!

Rathr,get a mugu to buy from you.DOn't you have friends around?

Mypeace wetin you mean say make I no put salt on top injury?Na me remind person wey go buy Afibank at 30 naira,abi na 300 naira during technical suspension.Thank God say no be Wema.Even when invisible tell you say na 27 naira him buy am,you still reminded him that it was actually 30 naira.
Chei,this your name,Mypeace is not peaceful o.

Mypeace why are you rubbing this Afribank thing into invisibles heart now.The thing dey pain no be small.

Meanwhile does anyone know what is happening to Ecobank/Sterling Bank merger?

Was share reconstruction a good thing for International Energy insurance?MAybe they should have waited till now to reconstruct shares.From what I see on the NSE a lot of people buy shares because they are cheap compared to other companies and not necessary if the companies are sound fundamentally.

Access Bank returns N100bn to investors

Friday Ekeoba , Lagos - 20.02.2008

Access Bank has said it has returned N100 billion to investors whose subscription in the bank’s last public offer were not successful.
The bank’s public offer of 9.2 billion ordinary shares of 50 kobo each at N14.90 per share floated last year, in its quest to raise N75 billion was oversubscribed by 350 per cent.
Disclosing this on Tuesday at the bank’s Facts behind Figure on the floors of the Nigerian Stock Exchange (NSE), the Managing Director, Mr. Aigbojie Aig-Imokhuede said the bank is extending a five year strategic objectives, which aims at putting it among the top three banks in 2012.

This is the funniest post I have read on nairaland @poster.lmao

E b like say ABC jet don take off.Tried loading some today but my broker(not cashcraft,I mean my good broker) said he could not get.
I don't know what is driving the price but I understand there Q3 result was very good.And who knows they might come o the market again to raise funds for Airline Business.

ASO SAVINGS HOLDS EGM, TO LIST ON STOCK EXCHANGE
Written by Austine Odo
Monday, 18 February 2008
Aso Savings and Loans Plc, a Primary Mortgage Institution (PMI) incorporated in Nigeria as a limited liability company on November 9, 1995 which formally commenced business,

on January 2, 1997 and converted to a public liability company (PLC) on September 22, 2005 is to hold its Extraordinary General Meeting tomorrow Tuesday February 19, 2008 to consider among other things, to apply for listing on the floor of the Nigerian Stock Exchange.
The meeting which is slated for 11: 00am in Benue/Plateau Hall of Transcorp Hilton Hotel Abuja is to consider and if thought fit, pass as an ordinary resolution, upon requisite approval for the company to carry on business as a listed company on the floor of the Nigerian Stock Exchange, including offering securities through the Exchange from time to time.

According to the notice of the meeting given on the order of the board by the company secretary, Bilkisu Rimi, the meeting will also consider, and if thought fit, resolve to amend the Memorandum and Articles of Association of the company by the insertion of a new paragraph 3 (vii) & (viii) and others thereof.

The meeting notice said a member is entitled to attend and vote at the meeting, and a proxy need not be a member of the company.

To be valid, the notice said, a proxy form must be stamped by the commissioner for stamp duties and deposited at the registered office of the company, Plot 266, FMBN Building, Central Business District, Abuja, not later than 48 hours before the meeting. Aso Savings and Loans Plc is regulated by the Central Bank of Nigeria under the Mortgage Institution Decree No. 53 of 1989 to carry out the business of mortgage banking in Nigeria.

I am moving my money gradually out of cashcraft.I be small fish so e no go affect them.

Dejipumping,
NA you sabi.No allow me change my mind carry cashcraft go SEC.People for your office don call me dey beg say make we resolve the issue amicably.So don't go defending your company blindly.

Cashcraft bought  worth 3 million naira worth of shares  at 5 naira.Without my consent.They sold a week later at 4.90kobo.Again without my consent.
1.I have made a lose on a transaction I did not authorise
2.I have been charged over about 60k naira for a transaction I did not authorise
3.I have been trying to contact them all day and they don't pick their phones.
4.I have sent them emails and they are not answering

And to make matters worse,I have been told by the marketer that i have to come down to Nigeria to close my account.A word is enough for the wise.I will be reporting the issue to SEC tomorrow.Lets pray they protect small investors like me(bearing in mind this is the reason they gave for investigating AP,AFROIL etc).Walahi the thing dey give me headache for work.I wan turn patient!

Thanks pumping.That number is not on their website

pumping
what number did you call CSCS on?Tried in vain but no one picked up

Case and While Law & stockbroking firms are handling Diamond Bank GDR on the LSE.
I contacted them and it appears the problem is from Diamond Bank in Nigeria.They don't seem to know what is happening themselves.

Roughcut,
That is Nigeria for you.
Please can someone help me with CSCS contact details.I have been trying the numbers on their website for the past 2 hours.What is the use of a trade alert if you cannot contact CSCS to halt a sale?

If Transcorp was not placed on TS it would have reached 20 naira and obviously that would have justified SECs position that dirty deals are going on on the NSE.SEC needs to be on top of their game or else sooner than later we no get any NSE again.Can you imagine Madam Onyuike saying SEC should have contacted them first,re-AFROIL,AP et al.A man goes to steal money and when police catch am,the thief papa dey vex say why police no contact am before going public.
I tire.

I said TRANSCORP IS DEAD