The Consultant

Please, there has been so much noise about market-makers, how will they operate to stabilise the capital market. + 44 7957110056

The term market makers is the latest terminology in the Nigerian Capital Market and the way they are going they make it look as if all the  solutions to the problems in the Nigerian capital market will be solved with the appointment of market markers.

A market marker can be described as a person or company registered by the appropriate agencies to play an intermediary role in the capital market.

They can be described as the discount house of the capital market, they are expected to acquired shares of a quoted company on the floor of the stock exchange when their is surplus of the target stock and to sell / release stock of quoted companies in their possession to the market in period of scarcities, i.e they are to provide a balance in the market.

The use of market markers had always been controversial as they are generally seen as an artificial means of market control.

Looking at the Nigeria environment, my fear is the likely possible abuse of the roles and mandate of the market markers

I took my e-dividend form sent to me by the Registrar of a company in which I have shares to my bank for stamping etc, I was surprised when my bank told me that I had to pay =N=1,000.00 just for them to do the needed things. I think this is exploitative – Wale, OOU

Dear Wale,

You are right, it is not only exploitative it is symptomatic of the illegal and exorbitant charges Nigeria Banks charge their customers. Well, don’t be surprised because some Nigerian Banks now charge customers for depositing money into their account; meanwhile don’t forget that these are the same banks killing themselves and their marketers over deposit.

In the first place, I do not think that there’s need for the form in the first instance, what should have been required is for the mandate to be part of the CSCS procedure.

Also, it’s a process that could have been run through the stockbrokers.

Please where is the office of Wema Registrars – Toyin, ikeja

Wema Registrars is at OLD LEVENTIS BUILDING , MARINA, SECOND FLOOR

As published in Issue 48 and uploaded on http://www.fnc0486.wordpress.com