The Nigerian Stock Exchange (NSE) as part of its effort to validate and authenticate membership status of all of its dealing members has given notice to 67 companies to appear before the council in order to authenticate or erase their membership status of the exchange.
In a public statement signed by Secretary of the council NSE, Mojisola Adeola, titled “Notice to Appear” released to the general public recently, the Exchange specified that though the companies affected have the right to nominate any of their directors, CEO or official to represent them at the hearing, but failure to appear would not prevent the council from taking decisions and issue such directives as it deems fit.
According to the Exchange, the purpose of the proposed hearing is in pursuant of the dealing members rule and the memorandum and articles of association of the Nigerian Stock Exchange.
The hearing also is to enable the dealing members affected whose dealing members license were revoked by the Nigerian Stock Exchange between 1996 to 2007 show cause while pursuant to Rule 6:4 (d) rule book of the Exchange 2015, dealing members rule and the memorandum and articles of association of the Nigerian Stock Exchange, they should not be expelled as members of the Nigerian Stock Exchange.
The affected incorporated companies are ATIF Securities, Abacus Securities, and ACB Securities, also Akitorch securities, Allwealth Securities and Apex securities.
They include Assets plus Securities, Associated Securities and Avon Finance and securities. Include Beachgroves Securities and Investments, Broadedge Securities and Bullion Stockbrokers Limited.
Cardinal Securities, City Investments management and Commet Finance & Securities. Among the companies expected to appear before the NSE council on January 26th include Corporate Trust , Crown merchant securities , Dalgo Investment &Trust as well as Devcom Securities. Also include Devserve finance &Securities, FBN Securities, Equity Securities and Farlda Investments & Finance.
Others are Gilts & Hedge finance, Global Investments & Securities, Goldworth Securities and Haggai Investment & trust.
Halsec Finance, HP Securities, Investicon Nigeria and Investment Resources. Island Securities, Jenkins Investments, Kapital Securities and Lozinger Securities are also expected to appear before council of the NSE.
Other companies are M&M Securities, M J Securities & Investments, Majestic Securities and Matrix Capital Management.
MBA Securities, MBCOM securities, Merchant Securities and Metropolitan Trust Nigerian made the list, as well as MMB Securities, MMG Securities, and Crown Merchant Securities.
Among the companies are Nationwide securities, New Horizon Finance & Investments, Nigbel Securities, and Omega Securities. Also Omnisource International, Opengate Finance Company and Pacific Securities.
Pamal Finance, Peak Securities and Prime Securities are expected to appear before the NSE council on January 26, alongside Prudent Stockbrokers, Royal Securities, Source Finance and Supreme Finance & Investment.
Synergy Assets &Trusts, Thomas Kingsley Securities and Trade stamp Securities, including Unit Trust Securities, Universal Securities, Viva Securities and Wintrust Limited.
The notice summoning the companies before the NSE council read “This notice is hereby issued on dealing members of the Nigerian Stock Exchange (NSE) whose names appear below that a special meeting of the national council of the Nigerian Stock Exchange (the council) has been scheduled for Thursday 26th January 2017 at 1.00 pm in the council room 22nd floor of the stock exchange house 2-4 Customs street Marina Lagos for the purpose of a hearing, to enable the dealing members listed below whose dealing members licenses were revoked by the Nigerian Stock Exchange between 1996 to 2007 show cause while pursuant to Rule 6:4 (d) rule book of the Exchange 2015 (dealing members rule ) and the Memorandum and Articles of Association of the Nigerian Stock Exchange they should not be expelled as members of the Nigerian Stock Exchange”
The NSE further disclosed that at the scheduled hearing expected to hold on January 26TH, the above listed members expected to appear before the council of the exchange, would be required to give reasons disciplinary action would not be taken against them.
The Exchange also required the companies to exploit defense avenues for their expected presentation and therefore requested to forward any document they expect to rely upon in their defense to the Exchange a week ahead of the scheduled meeting.
“Any documents they wish to rely upon during the hearing should be provided to the Nigerian Stock Exchange by 12:00 noon on Thursday 19th January 2017” the statement said.
The Exchange clarified that the hearing allows for any of the affected companies, CEOs or any Director or official of the dealing member to attend, but however emphasised that “ In the event of failure to honour the invitation, the council shall proceed with the hearing and make such decisions and issues such directives as it deems fit”