Panel indicts companies of sharp practices in market operations

The House of Representatives sub-committee on capital market, regulation and compliance says it has uncovered a lot of underhand and sharp practices perpetrated by various companies in the capital market.

This, the Tony Nwulu-led committee said was as a result of probe conducted by the panel following petitions on the alleged sharp practices in the sector.

Nwulu, who confirmed the probe at the weekend, said the panel has invited at 100 public liability companies to defend their operations, adding that the exercise is primarily designed to sanitize 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.”

National Daily gathered 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,” a 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.”