Friday, 23 January 2015

SEC pledges to deepen retail investors’ participation in the Stock Market


Peter Egwuatu & Nkiruka Nnorom

In its determination to develop and strengthen the Nigerian capital market, the Securities and Exchange Commission, SEC has pledged to deepen retail investors’ participation in the market.
Unlike the Stock market, Forex trading is Online
Ag. Director General of the commission, Mr. Mounir Gwarzo, assured Nigerians that the SEC will continue to ensure that the market remains vibrant in order to attract investors both locally and internationally.
Gwarzo gave the assurance when he received members of the Chartered Institute of Stockbrokers (CIS), who visited him in the commission’s headquarters in Abuja.
He said the current management will strive to develop domestic investment from retail and institutional investors
He said “We will step up to reach out to the market and improve investment. On the international side, what is most important is the enabling environment. Right now, the rules are very friendly and that is why we keep changing them from time to time to suit best practices and attract investors.
Earlier in his remarks, President and Chairman of the Governing Council of the Institute, Mr. Albert Okumagba, lamented the over 60 percent control of the Nigerian stock market by foreign investors.
Okumagba said the current situation were over 60 percent of the market is controlled by foreign investors gives serious cause for concern.
He said: “The level of participation of our locals is effectively less than three million when ideally over 80 million of our people should be in the market.
“Our coverage of insurance assets in Nigeria is not up to two percent of insurable asset. If we can increase from two to 20 percent and then to 50 percent, we will be shocked at the kind of contribution that insurance can make.”
Okumagba further disclosed that for pension, coverage is about eight percent, noting that if Nigerians that are supposed to be captured by the pension reform act come on stream, we can do multiples of what has been recorded.

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