Nigeria stock exchange
Nigerian stock exchange which is popularly referred to as NSE was established in the year 1960. At the present time the there are some 283 companies listed on it. The total market capitalization was about N 5.189 trillion which is roughly equivalent to $46.2 billion. The above mentioned figure is as on March 09, 2007. Nigerian stock exchange is composed of only one index which is termed as Nigerian stock exchange All Shares Index. In 1998, the government of Nigeria planned to have some revision in the capital market of Nigeria. The suggestion from the government part was to set up a new stock exchange termed as Stock Exchange of Nigeria (SEN) and the reversion of Nigerian Stock Exchange to its old name of Lagos stock Exchange (LSE). However, this suggestion was greatly opposed by the management of Nigerian Stock Exchange since they thought that this change might not be well understood by the foreign investors. The management suggested that the stock exchange should stick to its current name and should be treated at par with the proposed government exchange. They also protested that the Stock Exchange of Nigeria should not be given undue advantage over its counterpart.
The Securities and Exchange Commission (SEC) which the prime body that regulates the capital market in Nigeria is in the favor of multiple exchange system. The very reason behind this is that it thinks that multiple exchanges can attract more investors from around the globe. The Lagos Stock Exchange is an affiliated member of the Federal of International Stock Exchanges (FIBV). The other important point regarding Lagos stock Exchange is that it is also the founder member of the African Stock Exchanges Association (ASEA). Beside this, it also takes part as an observer at meetings of International Organization of Securities Commission. The Nigerian stock Exchange has a fully automated system. The data regarding the performances of the company which are listed on the stock exchange is published on weekly, monthly, quarterly and annual basis.
There was a legislation which stopped flow of foreign capital in the country. The government has abolished the same in order to increase the flow of foreign currency. This has resulted in lot of foreign brokers to get enlisted as dealers on Nigerian Stock Exchange. There is no bound in terms of nationality on Nigerian Stock Exchange which means that anyone can invest in it. Furthermore, the Nigerian companies hold an additional advantage in the term that they are allowed multiple and cross border entries on the stock exchange.
As far as the timing of the Nigerian Stock Exchange is concerned, it is 11:00 to 13:00. The stock exchange is open all weekdays. One has to pay 3% of the traded value of the shares as part of commission and an additional 1% as Securities and Exchange Commission fee. In terms of taxes, one has to pay 35% as corporate income tax and another 10% as capital gains tax. One also gets 10% as interest.
Other Articles
