NDIC urges scheme to protect small investors in capital market

The Nigeria Deposit Insurance Corporation (NDIC) has called for the establishment of an explicit investor protection scheme to protect the interest of small investors in the capital market and to boost public confidence among the investing public.

Umaru Ibrahim, NDIC managing director, said an explicit Investor Insurance Scheme would help in the development of a stable capital market, adding that the corporation has been advocating for a framework for the Investor and Small Insurance Policy Holder Protection Schemes in collaboration with the International Association of Deposit Insurers (IADI) study group.

Ibrahim was speaking when he hosted the executive council of Chartered Institute of Stockbrokers (CIS) who paid him a courtesy call in his Abuja office.

For the NDIC boss also, the over-concentration of stock-broking firms in certain parts of the country is not good enough especially for Nigeria which is driving financial inclusion.

He, therefore, advised the institute to mobilise resources for securing licences to spread such opportunities across the country as he further suggested that in line with agent banking model by the Central Bank of Nigeria (CBN), the institute could engage the services of some agents in various parts of the country to reach out to small investors.

Ibrahim also reiterated the need for partnership with the institute in capacity building, particularly for the corporation’s bank examiners to acquire more skills in capital market operations which would assist them in conducting consolidated risk-based supervision.

On the proposed amendments of the CIS enabling Act No. 105 of 1992, the NDIC boss assured the institute of the corporation’s support.