Alleged sharp practices: Reps commence full investigation into capital market operations

THE House of Representatives has commenced a full investigation ‎into the operations of the Capital market in the county in order to save the sector from total collapse.

The investigation being handled by the House Sub-Committee of the Capital Market on Regulations and Compliance in the Market, it was gathered followed series of petitions by shareholders against Public Limited Companies, PLCs, over alleged unwholesome practices in the sector in the recent time ‎ said to inimical to the nation’s economy.

‎Following this development, over 100 Plcs have been invited by the sub committee to defend their operations on the several petitions submitted to the committee against such practices with a view to tracking down the perpetrators and sanctioned them according.

Findings revealed that in the last two weeks the committee had unearthed a lot of underhand and sharp practices perpetuated by some companies while some of the refused to make submissions as directed by the Hon Tony Nwulu led sub committee.

ALSO READ: EFCC arrests fake Magu

A source close to the committee revealed that “what we requested from the companies were their corporate governance status, assets valuation and other vital documents.

According to the source, “this is just to ensure that they are in compliance with the extant laws and some of the companies are already scared, ‎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

“Sanitation is the key in this whole exercise because those who failed to comply and there is proof of Unwholesome practices will be severely sanctioned.

“And those with proof of poor valuation mostly the insurance companies will be handed over to the Economic and Financial Crimes Commission, EFCC for prosecution, the law is very clear about this, we are not after anybody or organization.”

When contacted, Chairman of the subcommittee, Hon Tony Nwulu confirmed the development, saying “we have commenced the investigation and it is primarily designed to sanitize the capital market and restore investors confidence.

“The truth of the matter is that those hiding, for now, may have every cause to regret because there will be no hiding place for them as we want to sanitize the place for the stability ‎of the economy.”