Shareholders Group Seeks Regulators’ Protections For Minority Investors
By Olumidagreaton January 10, 2019
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Nigeria’s capital market regulators have been urged to focus more on enhancing its regulations to protect the interest of minority shareholders in the new year to strengthen investors confidence in the market.
Both regulators, Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) are counselled to improve on regulations and policies that will make interest of minority investors as their priority.
Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), said that minority shareholders had lost their investments due to unfavourable government policies and forceful takeover of quoted companies.
Okezie said that SEC and NSE needed to map out strategies aimed at protecting minority shareholders to foster confidence and boost liquidity.
“There is a need for SEC and NSE to pay more attention to issues concerning investors especially as it affects minority shareholders who always suffer due to unfavourable governments policies,” he said.
PSAN boss said that issues pertaining unclaimed dividends and alleged stealing of dividends should also be addressed by SEC.
Moses Igbrude, Publicity Secretary, Independent Shareholders Association of Nigeria, said that SEC and NSE should focus on how to make the market attractive for enlistment of more companies.
Igbrude said that both capital market regulators should be concerned on ways to address incessant delisting of companies from the nation’s bourse.
According to him, reduction in transaction costs and unnecessary penalties should be pursued to minimise delisting of companies.
Igbrude said that SEC and NSE should engage the government on tax incentives to encourage listing of more companies as well as multinationals.
He said that companies having challenges in the market should be engaged and encouraged with various strategies to discourage delisting.
Igbrude, however, called on government and politicians to be mindful of their words and utterances to avoid further dampening of investors confidence.
Shehu Mikail, National President, Constance Shareholders Association of Nigeria, said that government must ensure free and fair election to boost both local and foreign investors confidence.
Mikail said that the outcome of the forthcoming general elections would determine the direction of the stock market as well as the economy in general.
He said that potential in the nation’s bourse were huge but could only be harnessed with friendly policies and good governance aimed at addressing infrastructure deficit and security challenges.
“If we are able to have a good government in place that knows how to put good policies to alleviate the economy to the standard level on area of good infrastructural, security and agricultural certainly the economy and our capital market shall be a toast of interest to both local and foreign investors,” Mikail said.