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Investments Tribunal Fines Four Stockbroking Firms N5m for Illegal Transactions

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  • Investments Tribunal Fines Four Stockbroking Firms N5m for Illegal Transactions

The Investments and Securities Tribunal (IST) has sanctioned four stockbroking firms – Union Registrars Limited, UIDC Securities Limited, Gosord Securities Limited and Kapital Care Trust Securities Limited for irregular transactions and unlawful sale of multi-million naira worth of an investor’s shares.

Delivering judgment in a case instituted by a medical doctor, Dr. Okam Kalu Ugwu, against the Securities and Exchange Commission (SEC) and the four firms, the IST, sitting in Enugu ordered that all irregular transactions in the Union Bank shares variously numbering 9,740 units, 20,740 units, 13,333, units, 9, 740 units, 25, 000 units, 16, 000, and 12, 986 units contained in different share certificates were declared illegal, unlawful, null and void.

The Tribunal also ordered that the 16, 876 units, 5,000 units, 850 units and 2,813 units of Union Bank shares purportedly covered by four other certificates be expunged from the claim, having not been established by credible evidence.

A statement issued by the acting Director, Corporate Affairs, IST, Mr. Kenneth Ezea stated that in the judgment delivered by the Presiding Chairman Hon. Nosa Smart Osemwengie, the Tribunal also reached the verdict that Union Registrars Limited, UIDC Securities Limited and Gosord Securities Limited are to restore and restitute the Claimant with 549,453 Union Bank shares and all bonuses and dividends in line with capital market rules, practice and procedures not later than 30 days from the date of the judgment.

Other Members of the Tribunal on the panel that reached the verdict are -Dr. Abubakar A. Ahmad, Albert l. Otesile, Mamman B. Zargana, Kasumi G. Kurfi and Onyemaechi E. Elujekor.

Union Registrars Limited was equally ordered to restore the name of the Claimant Dr. Okam Kalu Ugwu in the register of shareholders of Union Bank Plc as relate to the disputed shares in line with capital market rules, practices and procedures not later than 30 days from the date of the judgment.

All irregular transactions in the Claimant’s Guinness Plc shares covered by certificate number 22279776 were also declared illegal, null and void and Union Registrars Limited (2nd Defendant) and UIDC Securities Limited (3rd Defendants) were ordered to restore and restitute the Claimant with 2,083 units of Guinness Nig Plc with accrued bonuses and dividends, unlawfully verified, transferred and sold to third parties through their platforms not later than 30 days from the date of the judgment while Union Registrars (2nd Defendant) is to restore the name of the Claimant in the register of shareholders of Guinness Nigeria Plc.

Kapital Care Trust Securities Limited being the 5th Defendant was ordered to restore and restitute the Claimant with the 72,151units of Union Bank shares and accrued bonuses and dividends it unlawfully dealt with in line with Capital Market Rules, Practice and Procedures not later than 30 days from the date of the judgment and as well fined N100, 000 (One Hundred Thousand Naira) to be paid into the coffers of the Federal Government of Nigeria for breach of professional ethics in dealing with shares of the Claimant.

The sum of N5, 000, 000 (Five Million Naira) only was awarded as general damages against the Union Registrar Ltd., UIDC Securities Limited , and Gosord Securities Ltd jointly and severally in favour of the Claimant.

Restating the account of the case, Osemwengie said the action was commenced by way of Originating Application filed by the Claimant, Dr. Okam Kalu Ugwu, a Medical Doctor who claimed that he had over a total of 549, 453 units of Union Bank shares at all material time to the commencement of the action. He alleged that a total of 133, 078 units of the shares were unlawfully verified, dematerialized and transferred to 3rd parties by some of the Defendants without his authority, consent and knowledge.

The Claimant alleged further that the Union Registrars Ltd joggled its shareholding such that another 416,375 units of his Union Bank shares cannot be accounted for. He alleged further that his 2,083 units of Guinness Plc shares were also unlawfully verified, dematerialised and transferred to 3rd parties through the 2nd Defendant, Union Registrars, without his authority, consent and knowledge.

The Claimant informed the court that all his share certificates were kept in his residence at Federal Medical Centre, Umuahia, Abia State and that sometime on the 30th of July, 2007, he received a caution notice from First Registrars that some of his shares had been provided for verification. Alarmed that he did not give any instruction on his shares, he raced to where he kept his share certificates only to discover that they had disappeared.

The Claimant contended that Union Registrars did not respond to the letter written to it, rather it went ahead and dealt with the Claimant’s shares. As a follow up to the letter already sent to the 2nd Defendant, the Claimant on the 4th of December, 2007, went to the office of the 2nd Defendant to demand for details on his shareholding account. The Claimant met one Mr. Akeem who told him to produce copies of the share certificates and dividend warrant stumps to help in reconciling the Claimant’s account. This, the Claimant supplied the Mr. Akeem.

On the 16th of December, 2007, the Claimant wrote another letter to the 2nd Defendant reiterating his previous demands for details on his accounts, but no response were given. He decided to write a letter dated the 6th of April, 2009 asking the 2nd Defendant to place a caveat on his shares. However, the claimant was surprised to receive a letter from the 2nd Defendant in December, 2009 purported to have been written to him since the 30th of December, 2008. Enclosed in the letter were purported statement of account of the shareholding with Union Bank of Nig. Plc dated the 26th of January, 2009 containing 71, 311 units of shares, purported dividend report and CSCS transaction on the Claimant’s share accounts.

The defendants even traced the theft of the share certificates to an in-law of the Claimant who was a stockbroker but finding no merits in their defence the Tribunal blamed them for failure to exercise caution and apply the standard know your customer precautions even when duly forewarned. They were restrained from further dealing unlawfully with the Claimant’s shares.

The SEC being the 1st Defendant was exonerated from liability “From the totality of evidence before us, we do not think the 1st Defendant has breached his statutory role as apex regulatory body. We therefore hold that the 1st Defendant has performed its duties reasonably well”.

But SEC was however directed, under its regulatory powers, to supervise, monitor and ensure compliance by the 2nd, 3rd, 4th and 5th Defendants to the orders of the Tribunal not later than 30 days from the date of this judgment.
SEC is also to ensure that shares restored and restituted to Claimant are moved to the stockbroker company of his choice.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Investment

Saudi Arabia Aims for $80 Billion Tourism Investment to Fuel Vision 2030 Goals

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Saudi Arabia is embarking on a bold venture to attract up to $80 billion in private investment into its burgeoning tourism industry, a move pivotal to realizing its ambitious Vision 2030 objectives.

Tourism Minister Ahmed Al Khateeb unveiled the kingdom’s aspiration during an interview in Riyadh, emphasizing the imperative role of the private sector in spearheading investment endeavors.

With plans to disburse approximately $800 billion on tourism over the next decade, Saudi Arabia is steadfast in its pursuit to diversify its economy and reduce dependency on oil revenues.

Vision 2030 outlines a trajectory for the kingdom to metamorphose into one of the world’s premier tourist destinations, targeting 150 million annual visitors by 2030, a significant portion originating from overseas.

While the government and sovereign wealth fund have historically fueled tourism development, securing substantial foreign direct investment, particularly from the private sector, emerges as paramount in expediting Vision 2030 initiatives.

The kingdom’s fiscal projections, forecasting deficits until 2026, underscore the urgency of engaging private investors to actualize the ambitious tourism blueprint.

Saudi Arabia, having welcomed 100 million tourists in 2023, predominantly domestic travelers, eyes international markets such as India, China, the UK, France, and Germany for tourist influx.

A new program launched by the Ministry of Tourism aims to streamline investment processes, potentially unlocking $11 billion in private investment, bolstering Saudi Arabia’s tourism trajectory and reshaping its economic landscape.

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CBN Unveils Plan to Settle N1.64 Trillion Treasury Bills in Q2 2024

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The Central Bank of Nigeria (CBN) has announced its strategic approach to managing liquidity and meeting financial obligations by unveiling a comprehensive plan to settle Treasury Bills (TBs) worth N1.64 trillion during the second quarter of 2024.

This initiative, part of the CBN’s Nigeria Treasury Bills Issue programme, aims to regulate the money supply within the economy while effectively managing liquidity dynamics.

According to documents obtained by Investors King, the TBs settlement program is slated to commence on March 7th and conclude on May 23rd, 2024.

The CBN will focus on settling TBs with varying tenors, including N414.29 billion on 91 days, N43.74 billion on 182 days, and a substantial N1.18 trillion on 364 days.

The breakdown of the settlement plan reveals monthly settlements to address maturing TBs. In March, the CBN plans to settle N660.62 billion worth of TBs, followed by N292.17 billion in April and N688.3 billion in May.

Market analysts interpret this move as a testament to the CBN’s commitment to managing financial obligations and maintaining economic stability.

It provides investors with opportunities to engage in short-term financial instruments while contributing to overall liquidity dynamics.

The strategic settlement plan reflects the CBN’s proactive stance in navigating economic challenges and ensuring stability within the financial landscape.

As the apex bank implements these measures, stakeholders will closely monitor their impact on market dynamics and economic indicators, anticipating implications for investment decisions and monetary policy outlooks.

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Investment

China’s State-Owned Lenders Allocate $8 Billion to Revitalize Property Market

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General Images Of Residential Property

China’s state-owned lenders have committed a substantial $8 billion in loans to rejuvenate the country’s beleaguered property market, aligning with Beijing’s directives to bolster the sector.

Agricultural Bank of China Ltd. disclosed approving over 40 billion yuan of loans for real estate projects on predefined white lists, signaling a proactive approach towards supporting the housing market’s recovery.

China Construction Bank Corp. also joined the effort, extending 3 billion yuan to five property projects, with plans to greenlight over 20 billion yuan in loans soon.

Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among the institutions offering financing assistance, although the exact loan amounts remain undisclosed.

This initiative follows Beijing’s recent call for local authorities to enhance financing support for developers and curate lists of eligible projects.

In response, the big four state lenders pledged to meet reasonable financing demands from developers and projects identified under the coordination mechanism.

However, China’s property market faces challenges despite these measures. New home sales plummeted 34.2% year-on-year, underscoring the ongoing slowdown.

While existing home transactions surged during the Spring Festival holiday, new home sales remained subdued, prompting a cautious outlook among buyers.

The infusion of $8 billion aims to instill confidence and stimulate activity in the property sector, potentially heralding a gradual recovery amid persisting market uncertainties.

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