The Chartered Institute of Stockbrokers has called on the Federal Government to consider the establishment of a stabilisation fund for the market.

According to the institute this fund would go a long way to address the illiquidity challenge that was currently faced by brokers in the market.

A statement from the CIS on Friday quoted its President, Mr. Mike Itegboje, as saying this during its Investiture in Lagos.

He noted that what the equities market needed at this moment was something to kick start activities, adding that this would bring back the much needed investor-confidence into the market.

The CIS boss said that the stabilisation fund would go a long to addressing the margin loans overhang ,which had been posing as a huge challenge to brokers.

He added that since the global meltdown, some countries had made use of such funds to cushion the effect of the meltdown on the market.

He said, “We as stockbrokers are again renewing our call for a stabilisation fund for our market. This fund is very necessary as it would help to mitigate the losses incurred by investors and stockbrokers in the capital market in the last few years.

“And so, we want the federal government to look into this issue as many countries have taken the route of this fund for their market and Nigerian should not be an exception.”

Itegboje suggested that the Asset Management Corporation of Nigeria could take up the challenge of ensuring that such funds were properly used in the market.

The CIS boss also advised stockbroking firms to employ strategies and innovations that would enable them play bigger roles in the nation’s capital market.

Speaking during the induction of 35 fellows into the institute, Itegboje urged them to uphold the integrity and credibility of the securities dealing profession

While urging them to show good example by rendering quality services to their clients, he added that any member who abused the new status could forfeit his or her membership.

Source: Punch