Gbajabiamila: Efficient Operation of Capital Market Key to National Development
Kayode Tokede
Capital markets have been described as avenues for an increase in values of assets and wealth creation whose proper and efficient operation is essential to sustainable national economic growth.
Speaker of the House of Representatives, Femi Gbajabiamila stated this during a Public Hearing call/submission of memoranda on the Investments and Securities Bill and the Chartered Institute of Stockbrokers Bill in Abuja on Tuesday.
Represented by Peter Akpatason, Gbajabiamila stated that capital markets provide funding for new and existing businesses to innovate, expand, adapt to market changes and strides and also allows small and large scale investors to contribute to growth of enterprises and by so doing create wealth and economic development.
According to him, “Both bills for consideration today are in keeping with our commitment to the legislative agenda of the 9th House of Representatives to pursue far reaching reforms of critical institutions in our country. Our ultimate goal is to ensure that these institutions are properly grounded to perform their functions, execute their mandate and serve the best interest of the Nigerian people.
“The need to ensure that the operations of the capital market and the entire industry sector are sufficiently fair and transparent to ensure investor confidence is particularly of concern. It is often said that capital is cowardly and will run at the slightest risk. In this new global economy, when investors have the option to quickly move money across industries, nations and countries, we cannot allow deficiencies in the system that cause investors to worry about the safety of their investments.
“I am delighted that many industry stakeholders have convened in this Public Hearing today to participate in this public hearing and I urge you to take full advantage of this public hearing to make well thought out contributions so that final legislation that emerges from this process can adequately reflect the talents and expertise of the men and women who operate and regulate the capital market in Nigeria”.
In his remarks, Chairman of the House Committee on Capital Markets and Institutions, Hon. Babangida Ibrahim said the ISA Bill seeks to repeal the existing Investments and Securities Act 2007 and to establish a new market infrastructure and wide-ranging system of regulation of investments and securities businesses in Nigeria especially in the areas of derivatives, systematic risk management, financial market infrastructure and Ponzi scheme and platforms.
Other areas the bill seeks to address are alternative trading systems, inclusion of National Pensions Commission as part of the board of the Securities and Exchange Commission, deletion of the provisions on merger control in the current Act and amendment of the criteria of borrowing by sub nationals and strengthening and enforcement powers of the Securities and Exchange Commission in line with the requirement of the International Organisation of Securities Commissions, IOSCO.
