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Conflict resolution in capital market, where to go to

By NKIRUKA NNOROM

Often times, conflicts arise in the course of buying or selling shares, or even transacting business in the capital market. That of course, should be expected since capital market transaction involves complexities of human nature. It is understandable that no matter what is done to stop some malpractice in the capital market, some people are always loking for opportunities to abuse the system and defraud others especially ignorant investors.

But conflicts  involving stockbrokers, registrars and investors is not peculiar to Nigeria; they  occur in other  countries too. The difference however is the attitude and response of the regulators.  this implie the commitment of the the regulators to ensuring that investors, who are defrauded in the course of their business with  unscrupulous operators , do not feel   cheated at the end of the day, by ensuring prompt resolution. Perhaps, this is where regulators in the  Nigerian capital market will have to really sit up and do something that will put the market in good light.

In this regard , the Association of Stockbroking Houses of Nigeria, ASHON, recently said that it is planning quick resolution of conflict that will last for not more than five days.

Also, the Director General of the Securities and Exchange Commission, SEC, Ms Aruma Oteh, said that the Commission in conjunction with the Consumer Protection Council is working on a new Complaints Management Framework that will outline ‘where to go, what to do and what to expect’ in lodging and following up on complaints related to capital market transactions.

According to her, the new framework will make resolution of complaints efficient and investor friendly. Specifically, Oteh said that SEC intends to leverage the expertise of both the SEC and the CPC in delivering the desired result of efficiency, speed and cost effectiveness in complaints resolution, which she noted constitutes the roots of investor confidence in the market. However, for investors that are having challenges on how to go about channeling their complaints, further details will be provided on that next week.


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