A financial expert, Gbenga Obiseke, on Thursday called for review of the enabling law that mandates companies to be listed on the Nigerian Stock Exchange (NSE).
Obiseke, who is the Managing Director, Topmost Securities Ltd., made the call in an interview with the News Agency of Nigeria (NAN) in Lagos.
He said that any company that realised up to N1 billion turnovers annually should be listed on the floor of the NSE.
The expert said that the Federal Government and the Securities and Exchange Commission (SEC) should initiate a policy mandating all companies that make up to N1 billion as income yearly to be listed.
He said that this was the practice in other developed and some developing countries, adding that such policy contributes to the vibrancy of such countries capital market system in some foreign countries.
“In other countries, before a company starts operating, such firm is mandated to be listed on the exchange.
“I believed that if such policy will be applicable in Nigeria, it will enhance growth and development of the NSE and that of the economy at large,” he said.
According to him, many company managers think that it is only when a company becomes a big conglomerate before it can be listed on the exchange.
“This assumption is wrong; any company can be listed so long as it meets the requirements for listing and is ready to comply with the rules and conditions guiding activities at the NSE.
“And the conglomerate companies did not become big firms overnight, most of them started as one-man business, passing through different stages and challenges, until they become a well-known big company,” he said. (NAN)
