The Chief Executive Officer, Nigerian Stock Exchange, Mr. Oscar Onyema, has said the Exchange will continue to work towards improving investor confidence and ensuring that they are fully protected.

According to him, while the Nigerian capital market shows signs of improved investor confidence, the job of the Exchange is not done yet.

The NSE CEO said these in Lagos on Wednesday at an investor clinic organised by the Exchange for journalists.

He explained that while the improved regulatory environment had impacted the market positively, retail investors were not as active as they were before the financial crisis.

“We have seen strong and improved participation from foreign investors and local institutional investors, but local retail investors are not as active as they used to be,” he observed.

He, however, explained that several initiatives had been implemented and steps taken to better protect the investors.

Onyema said, “In line with one of our core strategic pillars for enhanced market performance and growth, that is instituting a “strong investor protection” framework, we have re-constituted the Board of Trustees for the Investor Protection Fund.

“Earlier in the year, the Exchange received the Securities and Exchange Commission’s approval of IPF Rules. This is a welcome development which will enable the Board of Trustees of IPF to carry out the duties for which the Fund was established, in line with the Investment and Securities Act 2007 and the approved Rules.”

He added that the Exchange was looking forward to working closely with the Fund’s Board of Trustees to sustain and promote investor confidence in the capital market.

Besides these, Onyema said the Exchange’s zero-tolerance stance on infractions by dealing member firms and listed companies had helped to lift the market, adding that its financial literacy programme was a first step in protecting investors.

He explained that the programme, started in 2012, “aims to enhance which investors’ understanding of the basics of investing around portfolio construction, asset allocation and risk diversification.

“The ‘Investor Clinic’ aspect of the programme, which is a flagship product for our financial literacy efforts, has been delivered in partnership with stellar organisations such as Morgan Stanley, Stanbic IBTC, Greenwich Trust and FBN Capital, just to name a few.

“These have primarily been focused on particular segments of the investing community to discuss the finer details of investing and to shed more light on the capital market eco system.”

According to Onyema, an additional 287 investor education workshops have been conducted for investors at the grass-roots level – civil servants, students, SMEs, etc. across Nigeria via the Exchange’s 13 branch offices.

He explained that having organised investor clinics for professional bodies, religious associations and registered shareholders’, the Exchange shifted attention to journalists, who were typically overlooked as sources of investable funds.

He said the goal was to equip them to properly manage their investment portfolios, in addition to influencing Nigerians to do the same.

Onyema explained that the introduction of a new trading platform, X-Gen, in 2013, was also part of efforts to boost market participation and development.

He said, “X-Gen opens an unprecedented level of innovative trading capabilities for the Nigerian capital market, providing direct market access for both the buy and sell sides, and mobile access through smartphones to the retail investors.

“Therein lays an opportunity for engagement with the 120 million mobile phone owners across the country. The new trading platform has also improved the overall quality of market experience for all stakeholders.”