By:g9ija,lagos

Members of Ibadan Zone Shareholders’ Association have passed a vote of confidence on the management of the Nigerian Stock Exchange (NSE) under the interim administrator, Mr Emmanuel Ikazoboh, for working round the clock to reinforce investors’ confidence in the stock market.

During a courtesy visit to Mr Ikazoboh, the association’s six-man executive members, led by the chairman, Chief AderemiOyepeju expressed the group’s solidarity with the interim administrator, saying the on-going market reform would put every operator and quoted company on their toes.

Specifically, the shareholders ‘chieftain commended the Exchange’s recent sanction of all erring quoted companies that have reneged in meeting their post listing obligations such as prompt release of financial statements and payments of listing fees among others. “Such zero tolerance is much needed to build the market” he said.
The group expressed dismay at the way many investors have suffered untold hardship due to lack of regular information from quoted companies and unethical practices of some market operators.
They urged the Exchange’s management not to relent in its efforts aimed at ensuring compliance with market rules and regulations by the operators and quoted companies.
The shareholders also noted the need for The Exchange to put necessary machinery in motion to ensure that private companies no longer use listing of shares on The Exchange as a marketing gimmick for private placement. According to them many investors have got their fingers burnt through participation in private placement as those companies hardly apply for listing after the offer. They lamented that huge amount of money has been locked up in private placement.

Commenting on the modalities for payment of dividend by quoted companies, the shareholderssuggested the need for banks to device a means of informing shareholders whenever dividend is credited into their accounts under the new regime of e-dividend.

On the on-going discourse on the status of registrars they, they endorsed independence of registrars for enhanced professionalism and avoidance of avoid conflict of interest. However, they admonished the registrars to always treat verification of share certificates with dispatch.

On the need to strengthen  prompt communication between the market and investors, the group urged the Exchange to ensure that Central Securities Clearing system (CSCS) alerts investors anytime transaction is about to be effected on their stocks.

The group lauded the on-going market reform by the Securities and Exchange Commission (SEC) but cautioned that it should be handled in a way that would not heat up the system. According to them, The Exchange has a lot of potentials that would always make it attractive to investors globally as long as investors’ confidence is sustained.

Responding, Mr Ikazoboh described investors as the nerve centre of the market otherwise there would be no market. He thanked the group for reposing confidence in his administration and The Exchange’s management and noted that virtually all the issues they raised are being addressed. For instance, he explained that a new window created by The Exchange to address the challenges of private placement has commenced operation.

He assured them that all forms of breach of market rules and regulations shall continue toattract stiff sanctions. He informed them that operation of trade Alert is being reviewed to make it more effective and efficient as a monitoring device.

However, he appealed to the shareholders to support the market through positive comments and regular report of unethical practices.