By Michael Eboh
The Nigerian Stock Exchange (NSE) has announced plans to delist a total of 10 companies for failure to file in their returns to the authorities in the capital market, as required by law and also for failing to fulfill their obligations to shareholders and the capital market authorities within the last three years.
This, according to Mr. Funso Fatobi, Deputy General Manager/Head, Alternative Securities Market /Private Placement Department (ASM/PRIPEX), at a one-day workshop for Capital market Correspondents, organised by the Nigerian Stock Exchange and the Central Securities Clearing System (CSCS), will help ensure sanity in the market and bring about a restoration of investorsâ€™ confidence.
He further stated that the NSE will, from July 1, 2010, commence the listing of all companies that conducted private placement exercises in the wake of the crisis that rocked the capital market.
This is following the approval of the Alternative Investment Market and the Private Placement Exchange (PRIPEX) by the Securities and Exchange Commission (SEC).
He further stated that the Emerging Market segment of the NSE has been scrapped and would be replaced by the ASM/PRIPEX, which is scheduled to commence with the process of listing of the various private placements instruments, bought into by investors in the boom period of 2005 to 2008.
According to Fatobi, the ASM/PRIPEX, is to assist in solving the problems faced by investors, who have no exit window to trade the securities bought from private placements.
Meanwhile, economist and financial expert, Dr. Biodun Adedipe has expressed concerns over the countryâ€™s ability to achieve its target of ranking among the top 20 economies in the world by the year 2020, as envisaged in the Vision 20:2020 programme of the Federal Government.
Speaking at the Nigerian Stock Exchange (NSE) and Central Securities Clearing System (CSCS) joint workshop for capital market correspondents, in Lagos, Tuesday, Adedipe, who is the Principal Partner, Biodun Adedipe & Company, disclosed that the attainment of the objectives of the programme is hinged on the availability of necessary and adequate financial resources.
He said that the availability of necessary and adequate financial resources is a major constraint to the attainment of the Vision 20:2020 objective.
He said, â€œThree major challenges to economic growth in any country, is availability, accessibility and affordability of financial resources. Resource availability is a major constraint to the achievement of the countryâ€™s Vision 20:2020 objective.â€
He called on the government to provide a conducive environment for businesses in the country to thrive, adding that will help in ensuring growth, thereby driving the country towards the attainment of the objectives of the programme.