Mechanism for Conflict Resolution in the Nigerian Capital Market
Posted: 22 Jun 2007
Date Written: 2005
The Nigerian capital market comprises of the Nigerian Stock Exchange with six branches, a number of stockbrokerage firms and a regulatory authority, the Securities and Exchange Commission. The market has grown tremendously since the establishment of the Nigerian Stock Exchange in 1961. Market capitalization as at the end of March 2002 was N673.9 billion up from N4.5 billion in 1980. Index of size of quoted securities, rose from 153 in 1980, 276 in 1994, to 259 equities in 2002. As the market activities increased, so is the rising number of conflict cases arising from the various participants in the market. Conflict arises among operators and investors, operators and the commission, investors and the commission, and investors inter se. With conflicting issues such as; non-receipts of dividend, non-purchase of securities, trade manipulation and insider dealings. Therefore, this paper assess the various mechanism used in solving these conflicts among the participants of the market. It is the recommendation of the paper that emphasis on dispute resolution mechanism as against litigation may enhance development in the market.
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