The Securities and Exchange Commission (SEC) has lifted the suspension on Ecobank Nigeria from acting as receiving bank or perform other activities in the Nigerian capital market for allegedly conniving with Arian Capital Management Limited, to convert shares of its client, Avil Services Limited.
SEC had last month suspended Ecobank, saying the bank, in connivance with Arian Capital Management, converted 555, 555 shares of First Bank of Nigeria belonging to a client of Avil Services Limited, a client of Arian Capital management.
The regulator said that when it discovered the violation and asked for information from Ecobank, the bank failed to respond, hence the suspension.
But Ecobank had said it did not connive with Arian Capital to defraud its client and had communicated its position to SEC and the regulator had given a time frame to comply with its directive.
Apparently satisfied that Ecobank has complied with the directive, SEC has lifted the suspension. An official of SEC confirmed the lifting of the suspension yesterday, “saying yes, the suspension has been lifted.”
SEC had said the suspension was as a result of the role played by Ecobank in a complaint by Avil Services relating to a margin loan transaction with Arian Capital Management Limited
According to SEC, under the said transaction, Arian Capital Management, advanced margin loan to Avil Services which was secured by 555,555 shares of First Bank of Nigeria Plc’s shares.
At the termination of the margin facility, Avil Services demanded for the lifting of the lien placed on the shares, but was informed by Arian Capital Management that the said shares were used as collateral for a “Global Margin Facility” that was granted to Arian Capital Management by Ecobank Nigeria Plc in a tripartite arrangement.
[LEADERSHIP]
No comments:
Post a Comment