TVC E, BUSINESS – The operators under the shield of Chartered Institute of Stockbrokers, Association of Stockbroking Houses of Nigeria and Association of Issuing Houses of Nigeria are seeking N200 billion intervention fund from the Federal Government to boost the market’s liquidity.
This move would be a short-term measure to cushion the effects of plummeting stock prices on the Nigerian Stock Exchange.
The three bodies made their common stance known during a meeting on the state of the market.
The operators also called on the Securities and Exchange Commission(SEC) to restructure the N90 billion dividend to form another intervention fund for the market.
Mr. Emeka Madubuike, the ASHON President said each market maker should be availed of between N1bn and N10bn to stimulate the market.
He said the Securities and Exchange Commission should also consider structuring accrued dividends to shore up the market, adding that in recognition of the importance of the capital market, the government should make a pronouncement on the state of the market as a form of comfort to the investing public.
The N200 billion intervention funds, would be made available by the Central Bank of Nigeria(CBN) through the market makers according to them, will help to stabilise the market and hedge external shock.
