Capital market operator has called for dialogue between the Securities and Exchange Commission (SEC) and Oando Plc over the issue on ground in maintaining the market integrity.
Financial market analyst, Andrew Tsaku, in an interview with media, said that SEC is empowered by law to oversee all companies’ activities in the Nigerian capital market, corporate governance issues among others. He noted that the issue about regulation is not just to hit the hammer, also to supervision and the supervision involves collaboration, engagement and dialogue.
He added: “At this point, it is almost prejudicial to say whether or not SEC is right or Oando is right because the issue in the law court, saying that ‘as an observer and as a participant in the market, I think what is germane for both parties is the fact that Oando is a local indigenous company that is interested in creating value for stakeholders whether it is the board, the management, the staff and indeed the shareholders . It should continue to play the role to satisfy the very interest upon which it is founded. And I think over the years, they have tried to ensure that such interest are largely protected.”
Tsaku added further that the company has its challenges in terms of the urge and the desire to grow by leaps and bounds, which has put Oando into some troubled waters and it is trying to come out of it.
Comparing the issue with AIT Communication, he explained : “Looking at the recent issue between the Nigerian Broadcasting Commission (NBC) and Daar Communications, represented by AIT, and within a space of time , dialogue took place over legality. AIT went to court, there was dialogue, persuasion and the NBC came to the table and found some middle cause action which has led both parties into talking and resolving the issues.”
He called on “SEC and Oando to resolve the issues by coming together to dialogue, urging that no party should show superiority because at the end of the day SEC needs companies to be listed on the board and if SEC continues to hit the hammer and every companies gets burnt up, very soon the body, SEC itself, will lose relevance because there will be no company to regulate.
Tsaku advised all the companies that are listed on the capital market to ensure good corporate governance at all times and be ready to clear issue giving room for speculation.
He noted that market is information driven as this will have impact on the companies’ share price and performance on the Exchange.