By Peter Egwuatu
The Securities and Exchange Commission, SEC has said that the controversies trailing the 2016 budget was affecting investment decision in the Nigerian market.
Director General of SEC, Mounir Gwarzo , who disclosed this in Lagos while responding to questions from newsmen said, though it does not affect the commission in terms of funding or operations, rather it affects investors, especially international investors who are waiting to see the policy direction of the Federal Government before taking decisions of how to invest in the country.”
Continuing, he said “For the commission, it is getting support from the Ministry of Finance. Also the constitution allows us to spend money to some extent, even when the budget is not passed.”
Commenting on the threat to remove Nigeria from the frontier market index by Morgan Stanley Capital International, MSCI, a US-based provider of equity, fixed income, and hedge fund stock market indexes, and equity portfolio analysis tools, Gwarzo said “this will affect Nigerian market, but we will try to see how we can meet with the relevant authorities to see that such decision is reversed.”
The MSCI Nigeria Indexes are currently classified under Frontier Markets. Ease of capital inflows and outflows is one of the key criteria in the MSCI Market Classification Framework.
Introduction of restrictive measures, such as capital or foreign exchange controls, which can lead to material deterioration of equity market accessibility, may result in the exclusion of such market from the MSCI Frontier Markets Indexes and a reclassification to Standalone Market status.
- 2:24 amGive and be ready to receive