Following a no-objection submission by the Securities & Exchange Commission (SEC), the Nigerian Stock Exchange (NSE), at the weekend invited comments from stakeholder in as it seeks to reviews its existing rule on members of the board of the Investor Protection Fund (IPF), which was reconstituted in 2012.
Specifically, prompted by the 9-member board, the NSE wants the rule amended to allow the reappointment of representatives of some trade group, without which all but one-member of the board would exit, a situation it said is not healthy
In a notice inviting memoranda from the public, the NSE “is proposing an amendment to the IPF Rules to cater for the re-appointment of members of the Board of Trustees of the IPF following the completion of their tenure, to ensure continuity on the Board.”
It noted the SEC as advising “The Exchange to amend its IPF Rules to clearly provide for the re-appointment of some Members acting in a representative capacity by their respective associations and institutions to ensure continuity on the Board.”
The IPF was set up by the NSE, in line with requirement of Part XIV of the Investment and Securities Act 2007, (CAP 124, LFN, 2004) (ISA), “to compensate investors with genuine claims of pecuniary loss against dealing member firms resulting from: insolvency, bankruptcy or negligence of a dealing member firm of a securities exchange or capital trade point; and​ defalcation committed by a dealing member firm or any of its directors, officers, employees or representatives in relation to securities, money or any ​​property entrusted to, or received by the dealing member firm in its course of business as a capital market operator.​”