Stakeholders in the capital market have suggested various measures that would be adopted by the regulators of the Nigerian Stock Exchange, NSE, and the federal government alike to ensure full recovery of the capital market from the current downturn.

Part of their suggestions include privatization and listing of state-owned enterprises, redefining the pension administration fund act to encourage more investment by PFAs in the capital market and wooing back domestic retail investors who have taken a flight to safety among other things.

Speaking on the development, the Chief Executive Officer of UBA Capital Plc, Mrs. Oluwatosin Sanni, called on the Federal Government to ensure privatization of state-owned enterprises and subsequent listing on the Nigerian Stock Exchange, NSE, saying that it would help to ingrain the recovery so far achieved.

Besides, she said that strong incentive like tax breaks should be offered telcos and other big firms to promote their listing on the NSE.

She further stated that attention should be paid to Pension Fund Administrators’ investment, adding that the guidelines must be updated to ensure full utilizations of the capital market.

Key industry reforms, according to her, should be continued, while friendly policies and initiatives should be introduced to encourage listing by small and medium enterprises

Citing example of actions taken by the United States of America to foster her capital market recovery after the 2008 global meltdown, Sanni said that the US Federal Reserve began a bond buying programme known as Quantitative Easing “QE” and capital injection into critical institutions.

“At the time, it was an unconventional policy that resulted in the reduction of interest rates and the provision of capital to financial institutions. This has helped to spur growth and confidence in the stock market and economy as a whole. The US Fed effectively injected USD 2.5 trillion into the market through debt purchases,” she stated.

According to her, there was also implementation of effective risk management systems and policies across all market operators.

“In 2013, the US SEC adopts new financial responsibility and reporting requirements for US registered brokers to ensure a more stable system with more transparent and well capitalized players – changes were made to net capital requirement, reporting standards & compliance,” she added.

•Credit: Vanguard.