LAGOS- The Nigerian Stock Exchange (NSE) has said there was the need for strong regulatory environment to enhance investors’ confidence in the nation’s bourse.
The Chief Executive Officer of NSE, Mr Oscar Onyema, made the assertion at a two-day workshop organised by the Capital Market Correspondents of Association of Nigeria (CAMCAN) in Lagos.
Onyema, who was represented by Mr Bola Adeeko, NSE’s Head, Corporate Services, said that a stronger regulatory framework would protect investors against infractions.
He said that the framework would ensure a safe investment destination for local and foreign investors and a favourable business environment for companies to thrive.
Onyema said the NSE had made great strides in its transformation journey, including review in market governance, structure and operations.
“We have worked tirelessly to revise key rules for dealing members and issuers.
“We have developed several new rules to create the much needed order, equitable treatment, efficiency and protection for all participants in our market,” Onyema said.
He commended the Securities and Exchange Commission (SEC) for supporting and approving its compliance measures aimed at strengthening the capital market.
Onyema said that its compliance measures were supported by tight enforcement procedures, which included inspections, market surveillance and a vigorous penalty system.
He said that the exchange had reinvigorated its Investor Protection Fund to reduce losses investors might suffer due to bankruptcy, insolvency, negligence or wrong-doing by a dealing member.
Onyema said that the NSE was committed to developing a more transparent, liquid and accessible market to support the delivery of a wider range of investment products.
He said that the market regulators would ensure continuous engagement of all stakeholders to sustain the capital market growth and development.
“While investors’ confidence is slowly being rebuilt, we still have a long way to go and many challenges to overcome.
“It is our hope that we will continue to play our various roles in the transformation of the Nigerian Capital Market.
“We hope that these measures will lead us to an all-round market improvement in 2015,” Onyema said.
The 2014 workshop was entitled: “Stakeholders’ Roles in Sustaining Capital Market Recovery”.