By Peter Egwuatu

Amidst long-drawn dominance of bears in the stock market, securities dealers are out to change their business model hoping to attract retail investors and improve the volume of trade.

Stock Market

To this end, the Association of Securities Dealing Houses of Nigeria (ASHON), has urged its members to conduct a diagnostic test on their businesses in order to review the models in view of the dynamic changes in the global financial market.

Besides, they have identified a lack of financial literacy as one of the reasons for the investors’ apathy in the capital market, calling for immediate action to step up comprehensive enlightenment programme.

Following its 2019 Capital Market Summit, held in Lagos recently, the association proposed a 13-point agenda, focusing on the operational and regulatory issues that must be addressed in order to move the capital market forward with multiplier effects on the members’ businesses.

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Part of the agenda stated: “There is an urgent and compelling need for the Securities Dealers to review their business models by taking a cue from the Chinese Model, Pakistan initiative or Mexican model, each of which places premium on financial inclusion through creation of one-stop financial centres across the country, especially, the rural areas where there is high concentration of financially excluded people.

“Market operators should embark on the creation of innovative,  flexible and affordable products that can satisfy the needs of existing and potential investors and tradable on user-friendly technology to promote financial inclusion by attracting investors of different disposable income into the market. “Lack of financial literacy has excluded many investors from the market, hence, the federal government, capital market regulators and operators should develop a comprehensive financial literacy curriculum,  targeted at women, youths and physically challenged while Information and Communications Technology (ICT), NIPOST and other Channels are used for grassroots development outreach.

“ ASHON should collaborate with other trade groups  in the capital market to intensify advocacy by engaging the government, legislators and capital market regulators on the need to encourage trading in securities through investor-friendly  legislation such as tax incentives and creation of enabling a trading environment for market operators.”