Few Years After Melt-Down,  Stockbrokers Mull Discuss with CBN on Margin Loans

Less down than 10 years after a global financial melt down that affected the Nigerian Stock Exchange adversely, the Chartered Institute of Stockbrokers (CIS), professional body for stockbrokers, is to engage the new leadership of the Central Bank of Nigeria, (CBN), led by Godwin Emefiele on the guidelines for margin loans.
This is with a foresight to reviewing the guidelines and making them contribute to capital formation. Following the abuse of margin loans, which partly contributed to the meltdown in the stock market in 2008 and 2009, the CBN and Securities and Exchange Commission (SEC) came up with some guidelines that stipulated certain criteria for accessing margin loans. But speaking at an interactive session with journalists in Lagos yesterday, the President/Chairman of Council, CIS, Albert Okumagba, said the institute would engage the CBN and SEC on the issues around margin loans. He assured stakeholders that the institute would work with regulators and operators to deepen the market and ensure that more Nigerians participate in the market. According to him, one of the ways the CIS will deepen the market is to build capacity and develop financial professionals that will enhance the country’s financial inclusion policy.

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