Lagos — The Nigerian Stock Exchange (NSE), yesterday partially carried out the order of the Securities and Exchange Commission (SEC) to remove Erastus Akingola from its council following his removal as managing director of Intercontinental Bank, by asking him to stay away from the Council's meetings.

The director-general of the NSE, Prof.(Mrs) Ndi Okereke-Onyiuke, who announced the decision yesterday, said it would amount to prejudice to suspend him when he has not been indicted by any court of law on the issues he is being accused of.

She said the time frame for Akingbola to stay away from the council would only be determined when there is a contrary report that he has been exonerated from the issues raised by the Central Bank of Nigeria (CBN).

The CBN had on Friday, 14th of August, sacked the chief executive officers of Union Bank, Intercontinental Bank; Afribank Plc, Finbank and Oceanic Bank over their complicity in reckless management of the banks, to the extent that investors and deposit funds, were put at risk.

According to Okereke-Onyuike, since Akingbola was not appointed but elected by members and non members of the Exchange, the Council cannot remove him from the board.

He has been asked to kindly stay away from meetings of the Council until the issue at stake is resolved, and CBN and SEC tell us otherwise. He was elected, not appointed to the council of the commission as 2nd vice president.

She noted that Akingbola could only be removed from the Council of the commission at the next annual general meeting or when an extra-general meeting is held to determine his fate.

"There is no need for the NSE to elect any 2nd vice president because there is no acting position, but if the need arises, we will elect one. It is beyond the limit and power of the DG, because it is the council that has the prerogative to remove him", she added.

On the earlier, full suspension placed on the five banks shares which chief executives were sacked, the DG, NSE said the Exchange was yet to meet with the CBN to lift the suspension.

She said that, while the position of operators in the market was that the full suspension on the banks be lifted, frantic effort would be made to reach the CBN governor who is expected to be back in the country by weekend to address the burning issues at hand.

She added that, by Monday the Council would have a definite position on the suspension of the banks' shares when it would have met with the regulatory authorities in the market.

In their own contribution, chairman of the Association of Stocbroking Houses of Nigeria (ASHON), Alhaji Rasheed Yussuff and that of Chartered Institute of Stockbrokers (CIS), Mr. Dipo Williams said the ultimatum given by EFCC as regards repayment of margin loans was uncalled for.

They said the two bodies have always being in dialogue with the regulator in the banking industry with a view to ensure a transparent and more viable banking system capable of backing the capital market.

ASHON and CIS which said they had always made impute to policies of government agencies in regard to issues in the market and the economy, said they were however, not consulted on the issues of the current banking reforms which led to the sacking of five banks' chief executives.

The two bodies, while stating that the crisis in the capital market in the last two years has resulted in the loss of 70 per cent, averred that the issue of margin loan granted by banks to capital market activities were normal business transaction practice, but were diverted for other purposes.

They said if any case was proven against any of their members, they would be sanctioned accordingly in line with laid down provisions.