House of Representatives commence probe of capital market operations

The House of Representatives sub-committee on Capital Market, Regulation and Compliance has started a probe in the capital market operations.

Over 100 public liability companies have been invited by the committee to defend their operations on several petitions submitted to the committee from all nooks and crannies of the country.

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 companies refused to make submissions as directed by the Tony Nwulu led committee.

A source close to the committee revealed that they have requested for corporate governance status, assets valuation and other vital documents from invited companies.

He explained that it is to ensure that they are in compliance with the extant laws.

“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,” he said.

Another prominent member of the committee said sanitisation is key in the whole exercise because those who fail to comply, backed with 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,” he said.

Chairman of the sub committee, Tony Nwulu (PDP, Lagos) confirmed that the committee has commenced investigation which is primarily designed to sanitise 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’s is no hiding place for them as we want to sanitise the place for Nigerians.

“Those given a clean bill of health will be highly recommended because actually, some of the companies live above board but those making false valuation do have a case to answer.”