Capital market stakeholders back Reps committee probe

Against the backdrop of the House of Representatives sub-committee on Capital Market, Regulation and Compliance ongoingprobe of the nation’s market operations to address some observed anomalies, some stakeholders have thrown their weight behind the exercise, saying it would further help sanitise the sector.

The committee, which said it has uncovered “a lot of underhand and sharp practices” perpetrated by various companies in the capital market, said it is escalating its activities by inviting the offending operators for questioning.
Following petitions on the alleged sharp practices in the sector, the Tony Nwulu-led committee said it has invited at least 100 public liability companies to defend their operations.

Nwulu who confirmed the probe at the weekend, said the exercise was “primarily designed to sanitise the capital market and restore investors’ confidence.”

He said: “The truth of the matter is that those hiding for now may have every cause to regret because there is no hiding place for them. We want to sanitise the place (capital market) for Nigerians.
“Those given a clean bill of health will be highly recommended because some of the companies lived above board but those making false valuation do have a case to answer.”

A source privy to the probe stated that the committee was focusing on the corporate governance status, assets valuation and other vital information from the companies. “This (the probe) is just to ensure that they are in compliance with the extant laws and some of the companies are already scared,” the source said.

“Before this exercise, we got clearance from the apex regulatory body, the Securities and Exchange Commission (SEC), as the sole aim is to restore investors’ confidence in the Nigerian capital market,” the source said.
Reacting to the development, market stakeholders said the probe was a welcome idea considering the fact that the regulatory bodies have failed to do their jobs.

Speaking to Daily Sun on telephone, a market operator who craved anonymity said it was high time the capital market began its sanitisation process, adding that the guilty companies should be severely punished.

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