• Friday, July 12, 2024
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SEC wants full representations of companies on NSE

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The Securities and Exchange Commission (SEC) has said it wants full representation of companies in the country on the Nigerian Stock Exchange (NSE).

Arunma Oteh, director-general of SEC, who said this at the Nigeria Summit organised by The Economist and sponsored by Accenture, FirstBank, Etisalat, GTB and others, expects to see specifically telecom companies, power sector companies, insurance and others listed on the capital market.NSE-Trading-Session

She said SEC is working with the stock exchange along with the Central Securities Clearing System (CSCS) to sponsor the transaction cost analysis.

“This is because the issue around cost of transaction in Nigeria is an issue that we have heard about and I think it is important that we have the exact data”, she said.

According to her, when the volumes of transactions go up, AA2the brokers and other participants would be more inclined to reducing cost. In the last six years, the SEC has reduced cost of transactions twice.

Oteh said the transaction cost analysis would be concluded very soon and there would be more flexibility. “What we say to the market is that if the costs are down, the volume will go up.

“So, I think it is an evolutionary process and sometimes I think liquidity is what really reflects in our market. With the introduction of market making, we have a 20 percent increase in terms of daily trading volume, but it is nothing compared to where it should be”, she added.

Speaking at the occasion, Bismarck Rewane, managing director and chief executive, Financial Derivatives Company Limited, said five years down the line there is expectation of fully Nigerian capital market, adding that Nigerian currency will be convertible, subsidies will be significantly reduced and double digit growth achieved.