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NSE suspends Adonai stockbrokers for regulatory infractions


The Nigerian Stock Exchange (NSE) has suspended Adonai Stockbrokers Limited over alleged infractions, that include an unauthorized sale of investor’s shares.

The Exchange on June 19, suspended the firm in the latest regulatory discipline after 2017 when several dealing firms were sanctioned for various offenses.

Details of the company’s suspension and more were contained in a regulatory report titled Dealing Member Firms Involved in Unauthorised Sake and Misappropriation of Clients’ Funds as published on the NSE website.

According to the NSE, the company had also allegedly made use of a client’s funds and segregated client’s funds, while also guilty of other prohibited practices.

This is not the first time that the Exchange has punished stockbroking firms and Dealing Members for bad behaviour in the capital market.

For instance, the Exchange suspended 36 firms and 7 stockbrokers for trading-related offences between January 2012 and August 2018.

In view of the rising cases of fraud being perpetrated by stockbroking entities, the NSE had put in place measures in the forms of regulatory frameworks and sanctions aimed at deterring offenders.

One of such is a set of newly-amended rules designed to prevent unauthorised shares transfers by stockbroking companies. The rules make it possible for the NSE to revoke the license of any firm that unlawfully transfers shareholders’ shares, while also imposing fines on the offender.

The new rules also stipulate that “a Dealing Member that has sold or transferred any securities without the authorization of the owner shall not be permitted to keep any benefits accruing from such transaction.”