Leadership (Abuja)
Nkiruka Anene
28 August 2008
Lagos — Stakeholders in the nation's capital market- the Nigerian Stock Exchange (NSE), Securities and Exchange Commission (SEC), including the stockbrokers have agreed to reduce the cost of transactions on the NSE by 50 per cent in order to arrest the prevailing market melt down.
The Director General of NSE who disclosed this yesterday said that this is one of the decisions reached at the stakeholders meeting held on Tuesday at Abuja towards stabilising the capital market.
Capital market stakeholders had on Tuesday in Abuja held a meeting with government officials on ways to halt further downturn of the market, which have resulted in loss of about N3.5 trillion in the last 5 months.
She explained that the NSE, which hitherto charges 0.6 per cent of transactions cost on primary market issues, would henceforth collect 0.3 per cent of such transactions, while the charges on secondary market transactions have being reduced to 0.3 per cent from initial 0.5 per cent.
She said that while the NSE has commenced the reduction with immediate effect, other regulators- the Central Securities and Clearing System (CSCS) and the apex regulatory authorities, the Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), including stockbrokers are expected to follow suit within the next two weeks.
On the continuous melt down despite measures employed to stem it, she said that the market recovery will be gradual rather than magical, while imploring investors not to expect quicker roll over of the market following Government and stakeholders' latest invention, which suggested measures aimed at arresting the prevailing market melt down.
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