|
|
 |
The measures, announced after a meeting between the federal government and the NSE stakeholders in the capital city of Abuja Tuesday, include the setting up of a Presidential Advisory Team on the Nigerian Capital Market, exemption on share buy-back of 20% of company shares and reduction in fees charged by the regulatory Securities and Exchange Commission (SEC), NSE and Capital Market Operators.
There are also plans to establish a Capital Market Stabilization Fund, while the Central Bank of Nigeria (CBN) is to review the liquidity situation in the economy and take appropriate measure to improve the liquidity in the system if required.
On its part, the NSE is taking steps to review its trading rules and regulations.
With effect from 27 August, there will be a 1% maximum downward limit on daily price movement while the current 5% limit on upward movement is retained; the SEC will release guidelines for Market Makers on the NSE before the end of the week and there will henceforth be a strict enforcement of NSE's listing requirement with zero tolerance for infractions.
The SEC and NSE will also take administrative actions to stem the rate of new listings until the market stabilizes and, having gone through the steps for delisting, the NSE will delist all the moribund companies earlier advertised.
For Nigerian banks, the meeting agreed that they will restructure existing facilities extended to licensed stock brokers, institutional and individual investors to allow for longer repayment periods.
The banks are also to partner with 'Market Makers' to inject funds into the capital market through appropriately structured credit facilities.
The Presidential Advisory Team on the Capital Market will continue to meet regularly to articulate and implement medium to long term measures that are necessary for the healthy growth and development of the Capital Market.
Analysts have identified problems plaguing the bourse as including high transaction fees, massive, panic sales of shares after the fall, government's inconsistent financial policies and the delay in passing the 2008 federal budget.
They said similar interventions as those announced in Abuja Tuesday had worked elsewhere around the world, including the US, to help restore investors' confidence.
|
|
|
 Share your opinion or read the 0 comments written
 Print version
 Sent to a friend |
| |
| |
| |
| |
| |
| |
Top |
| |
| |
|
| |
| |
|
|
|
|
|