The Nigerian Stock Exchange (NSE) yesterday reassured market participants that it will continue to work in improving investor confidence, saying “The Nigerian capital market shows signs of improved investor confidence…but our job is not done yet.”
Oscar Onyema, CEO, Nigerian Stock Exchange, who made this remark at the investor clinic organised for journalists associations said the improved regulatory environment and performance of quoted companies from 2012 till date, has positively impacted on stock market prices and overall market indices.
“We have seen strong and improved participation from foreign investors and local institutional investors, but local retail investors are not as active as they used to be,” Onyema noted.
He also emphasised that the NSE has adopted a zero-tolerance stance on dealing member firms and listed companies violations. He said that in line with one of the bourse core strategic pillars for enhanced market performance and growth, that is instituting a “strong investor protection” framework, the NSE has re-constituted the Board of Trustees for the Investor Protection Fund (IPF).
“Earlier in the year, the Exchange received the Securities and Exchange Commission’s (SEC) approval of IPF Rules. This is a welcome development which will enable the Board of Trustees of IPF to carry out the duties for which the Fund was established, in
line with the Investment and Securities Act 2007 and the approved Rules.
The Exchange continues to look forward to working closely with the Fund’s Board of Trustees to sustain and promote investor
confidence in the Nigerian Capital Market”, the NSE CEO said.
Onyema said: “We have proposed several rules to codify the accepted mode of engagement in our market. These rules are available on our new and improved website.
Two of such rules that might be of particular interest to you are our proposed Related Parties Transaction rule and rules around the conduct of AGMs.”
According to the CEO, the NSE has also started building out a robust financial literacy programme, adding that: “Back in February
2012, we kicked off our financial literacy programme as a first step in protecting investors.
This programme aims to enhance investors’ understanding of the basics of investing around portfolio construction, asset allocation and risk diversification.”
The “Investor Clinic” aspect of the programme, which is a flag ship product for the NSE financial literacy efforts, according to Onyema has been delivered in partnership with organisations such as Morgan Stanley, Stanbic IBTC, Greenwich Trust and FBN Capital, among others.
“These have primarily been focused on particular segments of the investing community to discuss the finer details of investing
and to shed more light on the capital market ecosystem,” the NSE CEO told participants.
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