BY MICHAEL EBOH

Shareholders, under the aegis of Ibadan Zone Shareholders Association, have called on the Federal Government to bring to book,  individuals that fleeced investors money and whose operators fraudulently contributed to the decline in the Nigerian capital market.

The shareholders, in a communiqué presented at the end of their one-day national seminar, with the theme: reversing the declining trend in the Nigerian stock market, the way forward,” lamented that  investors and shareholders’ funds in the market was eroded due to the fraudulent activities of operators.

According to the shareholders, some companies presented falsified accounts to shareholders at their Annual General Meetings, AGM, while share certificates were verified without the necessary approval and shares sold without proper authorisation.

The shareholders also called on the government to check the proliferation of shareholders’ association, saying this is not healthy for the capital market.

They also kicked against the issue of multiple taxation in the capital market, lamenting the fact that they are taxed when buying and selling shares, despite the fact that companies profit are also taxed.

On the factors that contributed to the decline in the capital market, the shareholders blamed inadequate regulatory framework, leadership problems and non-implementation of code of good corporate governance in many of the quoted companies.

According to them, the regulators did not properly analyse annual reports presented to shareholders, so as to vet information being made available to investors.

Other factors, according to the shareholders, are the indiscriminate liquidation of quoted companies in which people have investment as a result of poor management, persistent illiquidity in the stock market, low financial literacy, as people invested without relevant education; careless investment activities by shareholders due to lack of information from professionals and unfavourable pronouncements from regulatory authorities as regard the market situation.

On the solutions for market recovery, the shareholders in the communiqué advocated, “the creation and implementation of investors protection fund and trade Guarantee fund; institution of penalties against erring stockbrokers who indulge in defrauding their clients; emphasis on Investors’ involvement in serious research before investing; Investors’ are advised to diversify as no investment is risk-free. Besides, investors should not be emotional in making investment decisions.”