The Debt Management Office (DMO) has appointed Stanbic IBTC stockbrokers limited as the government stockholder. Speaking in Abuja yesterday, the Director General of the DMO, Dr. Abraham Nwankwo, said Stanbic IBTC stockbroker's responsibility as government stockbroker will include providing prices for FGN bonds on the floor of the Nigerian Stock Exchange (NSE), so that investors especially retailers who wished to buy or sell FGN bonds can do so.
Other responsibilities, he said, include, "acting as a liaison between the DMO, NSE, other stockbrokers and other market participants to ensure that all activities in FGN bonds and other FGN securities that may be listed in future are effected smoothly."
The DMO boss identified the benefits of the government stockbroker to investors to include; "investors can now access FGN bonds on the NSE, can now diversify their portfolio further by introducing bonds, provide an opportunity for investors to earn regular income on their investments through coupons paid on FGN bonds and it will be an additional and assured means through which investors can sell their FGN bonds before maturity."
With the appointment of a government stockbroker, Nwankwo noted that further stimulus will be introduced for the bond segment as well as higher volume of transaction both of which benefit the capital market.