Association Tasks NASS On Capital Market Bill

The Capital Market Solicitors Association (CMSA) has urged the National Assembly to expedite action on the passage of the capital market bill to boost investors’ confidence.
The Secretary of the association, Mr Benjamin Obidegwu, stated this in an interview with newsmen on Thursday in Lagos.
Obidegwu was speaking on the association’s first Nigerian Structured Products Summit titled ‘’Derivatives and other Financial Instruments’’.
“People have been very conscious, so we need to make sure that we win that confidence and a lot has to do with the regulators.
“They need to do a lot to make sure they check the market operators.
“So if they are able to do that and investors’ confidence comes back, liquidity will improve. If we have a stable forex policy, liquidity will improve.
“So, these are the things that we need. Once these things are together and confidence is back, the market will grow.’’
Also, Mr Adedoyin Afun, a partner with Bloomfield Law firm in Lagos, said that the passage of the derivative bill would expose investors to enforceability and reliability of the capital market.
“Derivatives market is not new to Nigeria but like every other thing that you borrow, you need to borrow it and do it properly.
“We still have the enabling laws. There are certain concerns from investors in that market.
“For example, are the contracts enforceable and there is what we call the principle of netting.
“These two issues still have not been cleared in Nigeria; we need to have legislation.