By  PETER  EGWUATU

THE Nigerian Stock Exchange (NSE) has warned investors not to miscomprehend the Investors Protection Fund (IPF) for insurance scheme.

The warning is coming after the Federal Government granted forbearance package to the stockbrokers following the margin saga with banks.

The shareholders argued that the government, via Asset Management Corporation of Nigeria (AMCON) took over their investment without compensating them while stockbrokers were considered for debt forgiveness.

Some of the shareholders said, “We equally lost our money through the shares we bought so government should consider us and instructing the NSE to compensate us through Investors Protection Fund.”The Executive Director, Market Operation and Technology of the NSE, Mr.  Adeolu Bajomo, said, “ IPF is not insurance policy where investors can make claim for. The IPF is meant for investors who genuinely made transaction with stockbrokers but such deal was not executed or was somehow defrauded by the stockbrokers.”

Bajomo, noted that margin transaction between stockbrokers and banks were genuine transactions but were not previously regulated.

According to him, “Shareholders should note that whatever investment they made was risk taken by them.  Investment in the capital market is risk bearing and the shareholders are risk takers, but for depositors government needed to protect them because they are not risk takers and in any systemic failure they must be protected.”

He declared that the primary responsibility of the NSE like other exchanges is to provide investors, issuers, and intermediaries with efficient, transparent, and well regulated market where capital is raised.

Continuing, Bajomo, informed that the NSE is overhauling its trade platform to make transaction on the stock market very transparent, with various market surveillance mechanism.

According, to him, “The NSE is poised to improve its trading technology so that investors can access the prices of equities as they are traded and make order through their phone and other Information Technology Telecommunication (ICT) mechanism that will help them monitor their investment.”