• Friday, March 29, 2024
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2019: Shareholders task SEC, NSE on minority investors’ protection

NSE gains sustainability eminence with Head Corporate Communications elected into GRI, Amsterdam

Shareholders have urged the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) to introduce policies that would enhance minority shareholders’ protection in 2019.

The shareholders, who gave the advice in separate interviews with the News Agency of Nigeria on Wednesday in Lagos, said it would strengthen investors’ confidence.

Boniface Okezie, national coordinator, Progressive Shareholders Association of Nigeria (PSAN), said minority shareholders had lost their investments due to unfavourable government policies and forceful takeover of quoted companies.

Okezie said SEC and NSE needed to map out strategies aimed at protecting minority shareholders, to foster confidence and boost liquidity.

“There is need for SEC and NSE to pay more attention to issues concerning investors, especially as it affects minority shareholders, who always suffer due to unfavourable governments’ policies,” he said.

SEC should also address the issues pertaining to unclaimed dividends and alleged stealing of dividends, he said.
In his comments, Moses Igbrude, publicity secretary, Independent Shareholders Association of Nigeria (ISAN), said SEC and NSE should focus on how to make the market attractive for enlistment of more companies.

Igbrude said both capital market regulators should be concerned on ways to address the incessant delisting of companies from the nation’s bourse.

According to Igbrude, reduction in transaction costs and unnecessary penalties should be pursued to minimise delisting of companies.

He said SEC and NSE should also engage the Federal Government on tax incentives to encourage listing of more companies as well as multinationals.

He said companies, having challenges in the market, should be engaged and encouraged with various strategies to discourage delisting.

He, however, called on the governments and politicians to be mindful of their utterances to avoid further dampening of investors’ confidence.

Also, Shehu Mikail, national president, Constance Shareholders Association of Nigeria, said government must ensure free and fair elections to boost both local and foreign investors’ confidence.
Mikail said outcome of the forthcoming general elections would determine the direction of the stock market, as well as the economy in general.

To him, the potential in the nation’s bourse are huge and can only be harnessed with friendly policies and good governance aimed at addressing infrastructure deficit and security challenges.

“The economy and our capital market shall be a toast of interest to both local and foreign investors, if governments can put in place good economy policies,” he said.