NSE Blacklists 2 for Unauthorized Sales of Clients’ Shares

Nigerian Stock Exchange (NSE) has blacklisted two persons and included them among those not suitable to execute capital market operations.

A regulatory document obtained revealed that the NSE blacklisted Uduma Arunsi, a stockbroker and executive director of Royal Trust Securities Limited, for selling shares belonging to investors without their consents, and Adewale Ogunbanwo, a former compliance officer at Dominion Trust Limited, for alleged misconduct and fraudulent activities.

The NSE said both of them were blacklisted in accordance with the provisions of Rule 1.24: Definitions Rulebook of the Exchange, 2015, Dealing Members’ Rules as amended, which centre on offences and sanctions pertaining to market abuses, shares fraud and misconducts.

“Dealing members are advised not to engage in any activity with the above-mentioned individuals,” NSE stated in the notice.

On account of the blacklisting, Arunsi and Ogunbanwo will not be permitted to work with any brokerage firms without the authorisation of the NSE in line with the provisions of Rule 6.13.

The rule stipulates that dealing member will be disallowed from employing certain categories of persons without prior consent of the Exchange.

Such persons include directors, authorised clerks or other persons including principal officers like the chief executive officer, chief compliance officer, chief finance officer, and chief risk officer, who have been indicted by the NSE or Securities and Exchange Commission.

Any person blacklisted by the Exchange could apply for reinstatement following the expiration of the blacklisting period imposed by capital market authorities, or where the blacklisting is not for life.