Capital market operators task SEC, NSE on market literacy

Some capital market operators have urged the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE), to intensify their investor education campaign with a view to increasing the number of local investors in the market.

They told the News Agency of Nigeria (NAN) in Lagos on Saturday that strengthening investor education campaign would also enable the emergence of a vibrant Alternative Securities Market (ASeM) for emerging companies.

Mr Ariyo Olushekun, former President, Chartered Institute of Stockbrokers (CIS), said SEC and NSE should map out strategies aimed at increasing local participation in the market and listed Small and Medium Enterprises (SMEs).
Olushekun said that regulators should give emphasis on market development to spur investors’ confidence and remove present apathy in the market.

“Regulators should reduce emphasis on foreign investors and work on ways that will increase local participation in the market.

“It is disappointing that we have only 4 million investors participating in the market in a country of over 170 million,” Olushekun said.

He said that government at all levels should look towards the market to augment their long-term infrastructure activities.

Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd, attributed the lull in the market and ASeM board, to dominance of foreign investors.

Kurfi said that the Federal Government should roll out economic policies that would encourage local investors.
He said the present realities at the global oil market clearly indicated the need for diversification of the nation’s economy.

Alhaji Gbadebo Olatokunbo, founding member, Nigeria Shareholders Solidarity Association, said that SMEs companies and investor, should be enlightened on the benefits of the market.

Olatokunbo said that the exchange should strengthen its regulations by introducing regulatory policies that would boost investors’ confidence and ensure safety of investment.

NAN reports that the exchange had on April, 23, 2013, re-launched the ASeM board, which offers companies several options to liquidity.

However, the sector had failed to attract listings as expected after its re-launch.
The exchange also in 2013 appointed 14 stock broking firms to act as designated advisers (DAs) for companies listed on ASeM board, to nurture the growth of small to mid-sized companies.