Director General, Securities and Exchange Commission, SEC, Mr. Mounir Gwarzo, has stated that the Nigerian Capital market is planning to create products that will encourage new investors to invest in the market
Gwarzo, who stated this in an interview with CNBC Africa, in London, monitored in Abuja added that efforts are being made to bring Pension Funds Administrators, PFAs to the Nigerian Stock Exchange, NSE platform.
This, he said, will make the capital market competitive and attract more investors that will in turn improved the nation’s economy, stressing that the Commission is also working on the possibilities of a unified corporate governance structure.
A statement from the SEC quoted Mr. Mounir as saying: “We still operate with very few products and one of the things we are doing is to as much as possible engage PenCom to come with guidelines for Pension Funds Administrators, PFAs who will invest in those funds. We are aware that PFAs can only invest in an instrument that is secured. We will encourage development of new products in the market”.
He added that “One of the things our 10- year master plan is talking about is to create new products and we are doing all that is possible in this regard. We will religiously pursue the 10-year master plan. It has been done in Malaysia, India, Brazil and they have become success stories. They have contributed in raising the standard of their capital market. It was done by all the key market operators.
“We are going to implement it religiously. We have started structuring it into different quarters. We have already started implementing it. We have already started what will be in the third and fourth quarters. As we move along we will look at how we have implemented the lower ones. Then we now graduate into the upper ones”.
In order to make the market more competitive, Gwarzo said the Commission has improved the level of its enforcement mechanism and also come up with a Corporate Governance Scorecard
“SEC has its own Corporate Governance Scorecard and also collaborating with NSE so that we can have one unified Corporate Governance Scorecard for the market. We are also working towards investor protection fund, in other jurisdictions they have investors protection funds. NSE has its own and SEC has its own.
“Some of these things are what we have put in place to ensure that there is zero tolerance to infractions in the market. Any operator that crosses the red line will be taken out of the market. By the time he crosses the green light, he is in the amber line and we will raise a flag telling him to do what is right, but once the operator now crosses the red line, we will take that operator off,” he said.
He added that the Commission is working towards investors’ protection funds which will go a long way at enticing operators in the sector, stressing that it is also operating a zero tolerance policy on infractions in the market.

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