The Director-General, The Securities and Exchange Commission (SEC) Mr Mounir Gwarzo, says it has instituted a N5 billion investors protection fund to compensate investors in line with the Capital Market Master Plan.
This is akin to an insurance program designed to protect the customers of brokers or dealers subject to the SEC from loss in case of financial failure of the member.
The national investors protection fund would compensate the investor up to a maximum of N200,000 in the form of electronic dividend or direct cash settlement for qualified losses.
A corporate governance scorecard is now in place requiring each company to comply with the score card.
“We have also set up an advocacy group that will look at the market, and will look at how can capital market be on the front burner of the Nigerian economy”.
According to Gwarzo, a board had been set up to help run the affairs of the national investor protection fund and its members would ensure that complaints from investors were genuine.
Payments to qualified beneficiaries are ongoing.