The Securities and Exchange Commission (SEC), yesterday, bared its fangs to assert its profile as the nation's apex capital market regulatory body, when it upturned the decision of Nigeria Stock Exchange (NSE), to suspend three dealers from operating on its floor.

NSE, last month, suspended Capital Bancorp Limited, Hamilton Hammer and Company Limited and Avian Capital Management Limited, over various alleged unwholesome practices.

An authoritative source in the market disclosed to The Guardian that SEC's decision could have been informed by alleged insubordination of NSE's officials over the suspension saga, as they refused to honour the commission's invitation to appear before it to clarify certain issues, raised by petitions from the suspended firms.

The suspended dealers had petitioned SEC, complaining of unfair handling of their cases, before the sanctions were slammed on them.

Consequently, SEC invited all the parties involved, including NSE officials, to its head office in Abuja. While others turned up for the meeting, the exchange was said not to have honoured the invitation.

Besides, the source disclosed further that NSE could not provide any plausible reason for its failure to be represented at the meeting.

SEC, which recently got its director-general, Mr. Musa Al-Faki disengaged from the service, therefore directed that the suspension slammed on three dealing members be lifted immediately, pending further investigations into their matter.

The commission was said to have derived its powers to upturn NSE's decision from the Investment and Securities Act (ISA) 2007.

Under the Act, SEC "may review any disciplinary action taken by a securities exchange, capital trade point or other self regulatory organisations against its members and may affirm or set aside such decision, after giving the members and the security exchange, capital trade point or self regulatory organisations an opportunity of being heard.

The three dealing firms were suspended on April 23.

Arian Capital Management was suspended for alleged irregular acquisition of a dealing licence.

It was also alleged that the chairman of the company was functioning as managing editor, when he was not a qualified stockbroker, contrary to Article 154 of the rules and regulation of the NSE.

Hamilton Hammer got its suspension for allegedly transferring 80 per cent of its equity holding to another party without approval.

Capital Bancorp, on its part, got suspended for allegedly causing confusion over the ownership of the dealing licence it was carrying, as there was no defining status of Capital Bancorp Limited or Bancorp Securities Limited.

NSE had also on March 26, suspended Nova Finance and Securities Limited, a stockbroking firm, over alleged manipulation of African Petroleum Plc's share price.