By Udeme Ekwere

Tuesday, 9 Nov 2010

The Chartered Institute of Stockbrokers has called for the review of the trading rules on the Nigerian Stock Exchange.

This appeal was contained in a communiqué, issued at the end of the 14th Annual Conference of the institute and made available to our correspondent on Monday.

The communiqué, signed by the President/Chairman of Council, CIS, Mr. Mike Itegboje, noted that a lot of things could be done by stakeholders to ensure a stronger capital market.

It said, ”There should be a thorough review, amendment and enforcement of securities trading rules, including an extension of the trading hours harmonisation of investment laws and the development of certain aspects of the capital market.”

It also highlighted the need to promote other areas of investment in the capital market, as against continuous focus on the equities market alone, adding that this would further deepen the market and boost activities.

According to the communiqué, ”The conference considered the need for the creation of an interface between the bond, commodities and foreign exchange markets. This will increase transparency, market size, varieties and volume of activities.

”We also recommend that all stakeholders should ensure full compliance with the laws, rules and regulation governing the capital market, in order to enhance public confidence in the capital market and the profession.”

The 14th annual conference of the CIS, with the theme, “Strengthening Public Institutions: A Critical Factor for Economic and Political Development,” was held in Abuja recently.

Improving market liquidity through product diversification, technological development of the Nigerian capital market and restoring investors‘ confidence through strong institutions were some of the topics covered during the conference.

It was also agreed that the Financial Services Regulatory Coordinating Committee, should hold regular meetings to provide directions to financial stakeholders, while also emphasising the importance of harmonising the codes of corporate governance.

The communiqué stated, ”Government should review, adopt and enforce the regulatory oversight functions of public institutions. All stakeholders should make inputs to the review, harmonisation and enforcement of the four separate codes of governance issued respectively by the Securities and Exchange Commission, the Central Bank of Nigeria, the National Pension Commission and the National Insurance Commission, to ensure uniformity across board.

This, it added, would prevent conflict of codes and make compliance easier.

While commending the Federal Government for signing the Asset Management Corporation of Nigeria bill into law, CIS also recommended consistency in the formation, implementation and execution of government policies to ensure continuity.

Source: Punch