NAN-HE-3
Sanction
By Chinyere Joel-Nwokeoma
Lagos, Jan. 13, 2017 (NAN) Some shareholder groups in the capital market have advised the regulators to stop arbitrary sanctions on companies to avoid further erosion of investors’ confidence in the market this year.
They told the News Agency of Nigeria (NAN) in separate interviews in Lagos on Friday that many investors were no more interested in the market due to over regulation.
Mr Adeniyi Adebisi, the new National Coordinator, Independent Shareholders Association of Nigeria (ISAN), said that regulators must address the issue of sanctions and penalties this year so that investors would stop shunning the market.
He said that shareholders were the most negatively affected whenever a company was fined for infractions.
Adebisi said that regulators were not revenue collecting agencies and should stop these sanctions unless when absolutely necessary.
Adebisi advised the regulators to devise other means of checking impunities instead of sanctions which had discouraged many companies from listing on NSE.
“Regulators are not revenue collecting points and should shun sanctions unless when necessary,” he said.
He also advised the Central Bank of Nigeria (CBN) to reform the foreign exchange market to evolve a single exchange rate, stressing that multiple exchange rates were not good for the country.
Mr Boniface Okezie, the President, Progressive Shareholders Association of Nigeria (PSAN), said that regulators needed to relax some of their policies for the market to move forward.
Okezie said that the apex bank must soft pedal on issue of fines imposed on banks for contraventions, adding that there must be warnings before sanctions.
He said that over regulation by the CBN was affecting the performance of banks negatively.
Okezie said that many companies were delisting from the Nigerian Stock Exchange (NSE) due to sanctions, penalties and over regulation by the regulators.
“For the market to move forward and make progress, regulators must relax some of their policies that are not helping the market,” Okezie said. (NAN)
JNC/TA
Edited by Tajudeen Atitebi