Senate stops recapitalisation in capital market

Taiwo Adisa, Abuja - 13.03.2008

THE Senate Committee on Capital Market, headed by Senator Ganiyu Olanrewaju Solomon, has asked the Securities and Exchange Commission (SEC) to stop further recapitalisation in the capital market.

Senator Solomon, in the letter sent to the Director General of SEC, stated that commission had no right to bar Registrars from handling the register of their parent companies from the end of March.

Solomon, in the letter dated March 12, 2008, a copy of which was seen by the Nigerian Tribune, stated that the commission’s directive on the recapitalisation of the capital market be kept in abeyance.

It was gathered that the Senate may summon the SEC boss to further explain the process for recapitalisation.

The letter read in part: “We write in respect of the commission’s directive barring Registrars from handling the register of their parent companies from March 31, 2008 and the directive on the recapitalisation of stock broking firms.

“While we appreciate the commission’s drive and initiative to sanitise the market and create an effective level-playing field, we wish to make it clear that the committee has not been adequately briefed in respect of these directives by neither you nor the Ministry of Finance.

“We are of the opinion and firm belief that rather than read about the policies of the commission and subsequent reactions that trail them on the electronic and print media, the committee, as the representatives of the people, should have been carried along through proper briefings.”