Operators want FG to force multinationals to list on the Stock Exchange

Posted by News Express | 15 December 2015 | 2,609 times

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Some capital market operators have stressed the need for urgent review of investment laws and privatisation framework by the Federal Government to compel companies to list at the nation’s bourse.

They told the News Agency of Nigeria (NAN) on Monday in Lagos that government should strengthen investment laws and privatisation framework as the country plans diversification into solid minerals to boost revenue generation.

Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Limited, said that government should introduce a policy that would compel multinationals to list after five years of operating in the country.

Kurfi said that government should avoid the mistake made during the entrance of telecommunication companies and the privatisation of power sector.

He also called on the government to overhaul the privatisation legal framework to compel emerging companies from the privatisation programme to be listed at the exchange.

According to him, the overhaul of the privatisation laws would enable a large segment of Nigerians to benefit from the unbundling of our commonwealth into viable private-driven companies.

He added that government should introduce tax incentives to boost listing and deepen market activities.

“Unless there is strong economic policy or change in present policies, the market will continue to plummet.”

He said that the Securities and Exchange Commission (SEC), NSE and market operators needed to embark on strong awareness creation to bring back local investors to take advantage of the current market downturn.

Kurfi said that investors’ needed to rebalance their portfolio because stocks were trading below their fair value.

Mr Oluwole Awe, Managing Director, Investment One Stockbroking International Ltd, said that government policy could woo multinational companies to list on the local bourse.

Awe said that companies could only list through strong government policy noting that “free enterprise is built on free entry and exit.” (NAN)

 

 


Source: News Express

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