Nigeria's securities regulator to crack down on errant traders

The new head of Nigeria’s Securities and Exchange Commission (SEC) has vowed to enforce tough new measures on those who flout capital markets rules in a bid to attract investors.
Weak regulation and impunity by offenders in the past has hampered growth with some operators witholding funds belonging to investors after transactions due to uneccessary delay in remitting their funds, leading to loss of confidence.
The commission last month suspended BGL Group, a stock broking firm after it was found guilty of witholding investors funds worth 5.8 billion naira ($29 million).
"We must operate within the rule of the game... any operator who cross the line will be sanctioned," Mounir Gwarzo, who was appointed director general in June to replace Arunma Oteh as head of the capital market in Africa's top economy, said on Wednesday.
Gwarzo said the commission was concerned about the downturn in the market and was doing everything possible to strengthen the market and boost local investors participation.
"We are not happy about the performance of the market, but we recognise the fact that the market is not insulated from happenings in the economy," Gwazo said.
Sub-Saharan Africa's second-biggest stock index has fallen progressively since June on falling global oil prices leading to depreciation of the local currency and introduction of tight control on the foreign exchange market by the central bank.
Some offshore investors have express concern that weak global oil price could lead to further fall in local currency and cause the erosion of their investment.
The regulator and the stock exchange are working out measures to further reduce transaction fees to boost investors interest in the capital market, the SEC director general said.