THE Chartered Institute of Stockbrokers (CIS), yesterday, advised the Federal Government to use listing on the floor of the Nigerian Stock Exchange (NSE) as condition for the renewal of telecommunications licences.
Also, the institute said that the Sovereign Wealth Fund (SWF) should be channeled into the market as part of measures to tackle the challenges of liquidity.
CIS argued that it was an “error” on the part of the Federal Government to have issued the telecommunications licences without insisting that the firms put measures in place to list their shares in the capital market.
President of CIS, Ariyo Olushekun, who spoke in Lagos yesterday advised relevant government agencies to ensure that successful firms in the privatisation agenda for Power Holding Company of Nigeria (PHCN) have plans to approach the NSE for listing.
Accompanied by First Vice President, Emmanuel Ohanwusi, Registrar and Chief Executive, Emmanuel Omoniyi Ajayi, Assistant Director in charge of Membership and Student Affairs, Victror Adubor and Head, Corporate Services, Rotimi Oyeniyi, Olushekun said: “The NSE need to do a lot of marketing. We have to use the carrot and stick approach”.
Explaining further, Olushekun said: “There are companies that are very important to the economy. When government gave out licences to telecommunications firms, government made an error by not insisting that they get listed after some time. That is an error that we should not allow to repeat itself.
“Many of the telecommunication firms will have to renew their licences any time soon. We have an opportunity at that point. Even if it is a small per cent of their shares, they should be listed. We also have opportunity with the energy companies”, Olushekun added.
Olushekun explained that in line with the institute’s mandate to continually provide world-class training and internationally recognised professional qualifications for individuals working in the finance and investment industry, the Governing council at its meeting of Thursday March 15, 2012 approved new programme tagged: “CIS professional Diploma in Securities and Investment”.
The new Professional Diploma, according to CIS, is a foundation course for any one wishing to start or progress his or her career within the financial service industry.
CIS explained that the programme designed to meet the needs of new entrants in the industry, providing an overview of all key areas of securities and investment.
“With a minimum entry requirement of five ‘O’ level credit passes including English Language and Mathematics in WASCE/GCE/SSCE/NECO (and equivalent), the new programme indeed has opened the doors of opportunity to millions of aspiring and promising Nigerians looking for the right career opportunity”, said CIS
Olushekun also used the opportunity to advise the Federal Government to put in place a tax incentive aimed at encouraging more participation in the Nigerian market.
According to the CIS boss, withholding tax should either be reduced or eliminated completely.
He said: “Withholding tax on dividend could be reduced or eliminated. Value Added Tax (VAT) for stock market transaction can be removed. When you buy or sell shares, you pay contract stamp. That is no longer necessary because the way we do our transaction has changed.
“Now when we buy shares, we buy directly into the account of clients unlike in the past after buying on the floor”.
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