Address market illiquidity, growth with stabilisation fund – CIS
On March 28, 2012 · In Business
BY MICHAEL EBOH
The Chartered Institute of Stockbrokers, CIS has called on the Federal Government to help address the lingering issue of illiquidity in the Nigerian capital market with the establishment of a stabilization fund.
Speaking in Lagos, Mr. Mike Itegboje, President, CIS, said the fund will help drive the recovery of the market, boost confidence and in ensuring sanity.
He disclosed that the fund could be used to fund market makers, equipping them financially to be able to mop up excess stocks of highly liquid securities as the need arises.
According to him, the Fund will be recouped when the market rebounds and become attractive to investors. This will restore investors’ confidence.
He said, “The setting up of a Stablisation Fund would provide liquidity in the market and assist in its recovery. We appeal to the men of goodwill to join us in demanding for a stabilization fund for the capital market. It can be done through the Asset Management Corporation of Nigeria, AMCON or Central Bank of Nigeria, CBN.
Itegboje, however, advised stockbrokers to re-organise their operations, with the deployment of effective strategies and innovations that would enable them play bigger roles in the capital market.
He said, “We must not continue to do business as usual. We must be bigger than we are today.” Itegboje also urged newly inducted fellows of the CIS to uphold the integrity and credibility of the securities dealing profession.
He advised the new fellows, numbering 35, to show good example by rendering quality services to their clients, adhering to the laws and rules guiding securities trading in the capital market and upholding the integrity of the profession.