Reps panel ‘uncovers’ sharp practices in capital market operations

The house of representatives sub-committee on capital market, regulation and compliance says it is currently probing capital market operations in the country.

The committee said in the course of the probe, it has uncovered “a lot of underhand and sharp practices” perpetrated by various companies in the capital market.

Following petitions on the alleged sharp practices in the sector, the Tony Nwulu-led committee has invited at least 100 public liability companies to defend their operations.

Nwulu confirmed the probe on Sunday, saying the exercise is “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 told TheCable that the committee is requesting 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.”