The Investors Protection Fund (IPF) of the Nigerian Stock Exchange (NSE) will begin effective operations in 2014 as the board of trustees of the fund meets to work out the final details of operational strategies and rules.
An impeccable source in the know of the impending meeting of the board of trustees told LEADERSHIP that the trustees would meet before the end of this year to conclude all arrangements for effective operations.
According to the source, the fund is in the process of rounding off its rules and processes for compensation of investors. He said the board of trustees had taken its time to ensure it laid a good operational framework for the fund before it starts assessment and compensation for claims on relevant losses.
Part XIV of the Investment and Securities Act 2007 requires the Exchange to establish and maintain an investors protection fund to compensate investors with genuine claims of pecuniary loss against dealing member firms resulting from insolvency, bankruptcy or negligence of a dealing member firm of a securities exchange or capital trade points; and defalcation committed by a dealing member firm or any of its directors, officers, employees or representatives in relation to securities, money or any property entrusted to, or received by the dealing member firm in its course of business as a capital market operator.
The NSE had last year inaugurated a nine-man Board of Trustees under the chairmanship of Mr Gamaliel Onosode. Other members of the board included Chief Executive Officer of Nigerian Stock Exchange (NSE), Oscar Onyema; Misan Kofi-Senaya, managing director of Central Securities Clearing System (CSCS), Mr Kyari Bukar; Chairman, Ibadan Zonal Shareholders Association (IBZA), Chief Sola Abodurin; Fubara Anga, Edosa Kennedy Aigbekaen, Sam Onukwe and Umaru Modibo.