The Association of Stockbroking Houses of Nigeria has called on the Federal Government to focus on measures aimed at improving activities in the Nigerian capital market.

According to ASHON, this is important if the market is to continue to witness increased patronage from both local and foreign investors.

The President, ASHON, Mr. Emeka Madubuike, who said this during a briefing on Friday, noted that it was essential that all things were put in place to ensure that the market was up and running so that it could contribute its own quota to the development of the economy.

He also commended the Federal Government and all other parties involved for the recent step towards rejuvenating the market through the N22.6bn forbearance package it declared to 84 stockbrokers. He said the move would go a long way towards attracting more investors into the market.

He said, “This singular act by the Federal Government gives us in the capital market a lot of hope that the market will begin to play its pivotal role as the engine room for the transformation of our nation’s economy.

“We also trust the government will continue to look for other ways to resuscitate the capital market to enable it compliment the various reform programmes of government and to become an integral component for the growth and development of the economy.”

The Federal Government had, on Monday last week, announced a N22.6bn forbearance package for 84 stockbrokers, who were affected by the margin trading loans.

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, who made the announcement at a press briefing in Abuja last week, said the fresh measures would enable it revive the capital market as well as play a vital role towards the economic transformation of the current administration.

Madubuike said that ASHON had over the last three years solicited for the forbearance on the margin accounts of some of our members with banks now taken over by Asset Management Corporation of Nigeria.

He explained that the request was based on the premise that for margin accounts, where parties made contributions, no party was expected to lose more than the contribution it had made. The ‘debt’ on the margin accounts came about from the fact that the bank failed to exercise the margin calls as required by the arrangement in the face of falling share prices.

“We conclude by pledging that, our Association, working along with other stakeholders in the Capital Market, will continue to initiate and pursue processes, procedures and policies in the areas of risk management and investor protection to ensure there will be no reoccurrence of the situation that led us to this position,” he noted.

Source: Punch (written by Udeme Ekwere)