Waiver on stock transactions: Lack of executive order responsible for non-implementation – Oteh
The Director General, Securities and Exchange Commission (SEC) has said the delay in gazetting the waiver granted on stock market transactions cost by President Goodluck Jonathan last December is responsible for its non-implementation.
The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, had last December told the capital market community of the approval to eliminate stamp duties and VAT on stock market transactions as part of efforts to resuscitate the market.
The announcement came along with the forbearance package given to 84 stockbrokers. While the forbearance package is being implemented, the directive on stamp duties and VAT is not in force.
Oteh, who addressed journalists after the Capital Market Committee (CMC) meeting in Lagos, said the implementation was being delayed because it had to be gazzetted. According to her, the process involves the Ministry of Finance, Ministry of Justice and Federal Inland Revenue Service (FIRS).
She explained that the delay was due to the number of agencies involved in the process, assuring, however, that very soon the process should be concluded.
On the forbearance package, Oteh noted that the 54 brokers, who accepted the offer were already signing agreements with the Asset Management Corporation of Nigeria (AMCON).
Speaking on the recapitalisation of market operators, the SEC boss said the board of the commission would look at the proposal and contributions of operators regarding the issue and come up the new capital requirement by the end of the year or early next year.
Oteh disclosed that the CMC , which is a body of all capital market regulators, operators and stakeholders, was coming up with a blueprint for the market. The blueprint, she explained would be a 10-year master plan with quarterly milestones.
He added that the CMC would also bring out a capital market literacy plan and Islamic finance master plan, all meant to reposition the market to play its role in the development of the economy.