NSE would increase its investor education to enhance financial literacy
The newly established Investor Protection Fund, IPF, is billed to commence operation in 2014, the Chief Executive Officer of the Nigerian Stock Exchange, NSE, Oscar Onyema, said on Wednesday in
Mr. Onyema said the need to establish the IPF was informed by the desire of the NSE to give investors a statutorily backed avenue for reducing the losses they suffer as a result of bankruptcy.
Reviewing the NSE’s 2013 market and the outlook for 2014, Mr. Onyema said the IPF would also cover losses that arise from insolvency, negligence or wrongdoings by market operators in equity transactions
He said that the IPF would strengthen the confidence of domestic investors, whose participation in retail investors’ activities in the market stood at about 49.06 per cent as at November 2013.
The operations of the exchange in 2014, he pointed out, would focus on efforts to sustain the market growth, while also sustaining the attraction of foreign investors in the Nigerian capital market.
He said that the NSE would increase its investor education with other financial market regulators, to enhance financial literacy.
He said the NSE would ensure a world class surveillance programme and enhance government relations for the capital market and national economic development during the year and beyond.
The NSE boss said quoted companies and brokers were sanctioned to pay about N61.21million and N43.5 million in 2013 for various market violations, noting that it would continue with its zero tolerance to irregularities.
On the 2013 performance of the NSE, Mr. Onyema said that the market capitalisation of listed equities grew by N4.25 trillion to N13.23 trillion, against the N8.98 trillion posted in 2012.
The value of traded equities in 2013, he noted, appreciated by 58.66 per cent to N1.04 trillion, while the NSE, within the period under review, recorded two listings and 19 new bond listings.
He, however, said the political environment ahead of the 2015 election and change of leadership in the Central Bank of Nigeria, CBN, could pose some challenges to efforts aimed at realising set targets at the market in 2014.