As part of efforts to build a robust capital market for the economy, the Nigerian Stock Exchange, on Friday, called for the cooperation of the Institute of Capital Market Registrars.
Speaking at the third annual conference of the institute in Lagos, the Chief Executive Officer, NSE, Mr. Oscar Onyema, said that the task of eradicating all unwholesome practices in the capital market would be efficiently achieved jointly.
Onyema, who was represented by the Head of Brokers and Dealers Regulation, Mr. Mohammed Momoh, noted that fraudulent acts, including unauthorised sale of investors shares and pilfering of dividend warrants, would be wiped out when stakeholders were united against such.
“We are all stakeholders on this project and it behoves us to bequeath a strong capital market for our future generations,” he said.
He stated that over time, the management of the Exchange had observed that many unauthorised sales of investors shares succeeded with the active connivance of registrars, adding that this was partly why the various electronic products, like the e-bonus, e-dividend, and e-IPO were introduced.
“While I agree there are challenges that you face as registrars, I would desire a collective resolution of the problems pose by trying to verify certificates owned by the sick, weak and elderly people, the unresolved issue of huge unclaimed dividends in the books of listed companies, the cumbersome process involved in transfer of shares held by estates of the deceased, etc while not negating your responsibility for risk prevention,” he said.
Onyema urged the institute and its members to continually develop methodologies that would provide satisfaction to investors in the area of fast-tracking the processes of share verification and lodgments.
According to him, the NSE has adopted a multi-departmental approach to quotation drive, considering the fact that its branch network is providing a geographical coverage geared towards increasing the number of quotable companies and instruments listed in the market.
He said, “We are putting in place flexible listing rules to attract both issuers and investors.”
The NSE boss noted that this would make the market liquid and promote visibility, growth, transparency, continuity, sustainability and investor confidence.
The President and Chairman of Council, ICMR, Mrs. Lola Oyebadejo, said the purpose of the conference was to examine the dynamics of market performance occasioned by the seemingly unusual happenings in the financial system and the sudden large amount of new rules introduced by various regulatory authorities with a view of accurately refocusing for the future.
Meanwhile, Oyebadejo has appealed to President Goodluck Jonathan to sign into law the bill establishing the institute.
Source: Punch/Okechukwu Nnodim
