CIS seeks CBN'S support to boost stock market transactions
THE Chartered Institute of Stockbrokers ( CIS) has urged the Central Bank of Nigeria ( CBN) to support the institute to boost transactions in the Nigerian securities market.
In a courtesy visit by the leadership of the Institute to the CBN Governor, Olayemi Cardoso, the stockbrokers, led by the President and
Chairman of Council, Oluwole Adeosun, applauded the appointment of senior stockbrokers in some key positions in the economy by the Federal Government.
Adeosun, who noted that Cardoso had been a longstanding member of the Institute explained that stockbroking firms required some supports from the CBN to enable them operate optimally and attract more participants into the market.
Besides, Adeosun affirme d the capacity and willingness of stockbrokers to support the proposed recapitalization of banks in the next 24 months. According to him, this has been demonstrated during the previous recapitalization programmes in Nigeria.
"The Nigerian capital market, has the capacity to support the recapitalisation exercise. It was demonstrated during the indigenisation exercise as far back as 1972 and successive banking sector recapitalisation programmes over the years up till the last major banking recapitalisation exercise between 2004 – 2006.
"As we did in the last exercise as Issuing Houses/ financial advisers and Stockbrokers to the Capital Issues amongst others. With technology and new subscription channels like mobile apps, the current exercise should record even greater success and bring in more and younger Nigerians into the investment community.
"We request that securities of publicly listed banks should be allowed as marginable securities as long as these securities pass the ' Criteria for Determining Marginable Securities' test. Margin lending drives the growth of capital markets in the advanced countries by enabling investors to acquire securities in excess of their direct savings within a regulated market framework.