Guardian

CAPITAL market operators have decried the non-release of the operational guidelines for Investor Protection Fund (IPF) three months after its board was inaugurated.

They told NAN in Lagos Wednesday that the delay had kept investors who suffered losses during the global economic meltdown in limbo.

The Nigerian Stock Exchange (NSE), on September 21, 2012, inaugurated the new board, with Mr. Gamaliel Onosode as the Chairman.

The Fund was initiated to compensate investors who suffered financial losses during the global economic meltdown that also affected NSE.

The President, Progressive Shareholders Association of Nigeria,  Boniface Okezie, said that beside the constitution of the board, investor education on the benefits and those eligible were necessary.

Okezie pointed out that many investors left the market because they did not know their rights and needed to be enlightened.

He lamented the failure of the regulators to provide information until when there was problem, adding that investors needed to be carried along by the market regulators.

The President, Nigeria Shareholders Solidarity Association, Timothy Adesiyan, said that the market, being information—driven require quick release of the operational guidelines of the Fund.

Adesiyan said that investors who suffered financial losses would only take advantage of the initiative if they knew how to go about it.

According to him, the Fund, if properly managed, would boost investor confidence in the nation’s bourse, especially investors who were misdirected by unscrupulous stockbrokers.

The National Coordinator, Independent Shareholders Association (ISAN), Sunny Nwosu, said that the Fund was necessary to ameliorate the problems of investors.

Nwosu stressed that investors needed to know why the previous attempt to set up the Fund failed, adding that NSE should organise an investor education forum.

He however, urged the Fund’s board members to ensure full disclosure and accountability in the management of the Fund.

The Fund had N625 million in its coffers as at December 31, 2011.

Members of the board include the Chief Executive of the Central Securities Clearing System, Kyari Bukar; and the Chief Executive of GT Registrars, Mrs. Misan Kofi-Senaya.

Others are Mr. Sola Abodunrin shareholders’ representative; Mr. Lawrence Fubara Anga, a capital market solicitor; Edosa Aigbekaen, the Secretary of SEC board; Sam Onwukwe; Alhaji Umaru Modibo and Mr. Oscar Onyema.