Experts prescribe ways to boost confidence in capital market
Instituting a robust corporate governance and risk management across stakeholders’ groups, enforcement of rules and regulations without exemptions, and heavy sanctions for infractions are among factors that will drive investors’ confidence in the nation’s economy and capital market in particular.
An economist and financial expert, Dr. Biodun Adedipe, stated this at the 8th annual conference, investiture of fellows and induction of associates of the Institute of Capital Market Registrars (ICMR) in Lagos recently.Adedipe, who is also the Managing Partner, B. Adedipe Associates Limited, spoke on: “Stratgeic Options to Drive Investor Confidence-The Role of Stakeholders.”
According to him, a high sense of responsibility on the one hand and commitment to ‘project Nigeria’ on the other by all are the twin requirements for building investors’ confidence, and thus attracting the desired quantum of investments that will grow the Nigerian economy sustainably and inclusively.
“We must see ourselves in it, together as a team. No recrimination, and no finger-pointing,” he said.Speaking further, he said investor confidence would be enhanced by robust policy environment with clearly defined rules and regulations, along with strict observance of the rule of law and sanctity of contracts.
“There should be constant review and update of market infrastructure to improve the convenience and ease of investment (doing business). Regulatory coordination should be strengthened to pre-empt regulatory arbitraging within and across borders. There should regular engagement of policymakers and regulators with operators. Enforcement of rules and regulations without exemptions, and heavy sanctions for infractions; this should apply across the board – regulators, self-regulators, operators, issuing companies, and investors.
There should be provision of more incentives for creative and innovative initiatives that foster market development, while professional bodies like the ICMR should promptly issue policy papers and professional opinions when issues bordering on investor confidence arise, no matter the parties involved,” he said.
“This is more so in a pre-election year that we are in, along with the promise of more robust investment environment in the 2020’s. This is the best time to position for the impending wealth creating opportunities,” he added.Also speaking, the President/Chairman of Council, ICMR, Mr. Bayo Olugbemi, said if all organisations in the market are profitably managed, the impact on investor confidence will be positive.
He noted that as political gladiators strategise in their preparations for the 2019 general elections, governance is gradually taking the back stage, and the stock market is feeling the impact from investors who cautiously watching events.“If this seemingly ominous trend continues, investor confidence will continue to be on the decline,” he warned.
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