|
|
Nigeria: Capital Market - Nass to Review Operation Rules
 |
 |
|||||||||
|
||||||||||
|
|
|||||||||
|
||||||||||
Daily Trust (Abuja)
1 May 2008
Posted to the web 1 May 2008
Kayode Ekundayo
Lagos
National Assembly would need to review existing laws and regulations that govern the operational activities in the Nigerian Stock Exchange (NSE).
Chairman, Senate Committee on Capital market, Senator Ganiyu Solomon who disclosed this in Lagos said the rules of the market need to be reviewed in order to accommodate both existing and future growth adding that the current rules did not capture the acceleration experienced in the industry right now.
The committee members, who were on the floor of the market on Monday as part of the visit to NSE, have first hand knowledge of the Exchange's operations.
According to Solomon, the existing rules that guide the operations of the market need to be enlarged while thorough review of the rules is also necessary in order to have a virile and sustainable market.
He said the senate would take particular look at the Investment Security Tribunal (IST) law of 2007 adding that the law did not cover adequately recent developments in the market.
On the issue of N1billion recapitalization base for stock broking firms in the country which has created furore among the stakeholders, Solomon said the senate would not take position on the issue adding that the National Assembly would soon call for stakeholders meeting where the recapitalization base would be trashed out.
"We are going to be neutral on the issue but we will look at all the sides as what benefits Nigerians, stakeholders are likely to benefit from the process. If at the end of the day the whole process is to the benefit of the people so be it", he said
The Exchange's director general, Ndi Okereke-Onyiuke said concession should be given to stockbroking firms as this was the method worldwide adding that NSE would not allow stockbrokers to be used as money launderers insisting that all the existing stockbrokers licensed by the exchange have integrity and warned that any of them should not collect money from any individual for the purpose of raising capital.
|
"If you are going to raise money, it should be done according to the market's procedures not through the back door", she said
Okereke-Onyiuke also sought the senate's support on the need for effective harmonization of the existing laws in the market. This, she said, would enhance the growth and development of the market.
The exchange has consistently advocated for abrogation of value added tax and stamp duties because they serve as disincentive to investment
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Copyright © 2008 Daily Trust. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections -- or for permission to republish or make other authorized use of this material, click here. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Make allAfrica.com your home page | RSS Feed | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Top | Site Guide | Who We Are | Advertising | Search | Subscribe | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Questions or Comments? Contact us. Read our Privacy Statement. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
