The Nigeria Stock Exchange (NSE) is set to pay N42, 227,397 (forty two million, two hundred and twenty seven thousand, three hundred and ninety seven naira as compensation to 158 investors who suffered embezzlement (defalcation) from 29 dealing member firms.
The dealer firms of the exchange have become either inactive or have been expelled.
The Board of Trustees of the Investors’ Protection Fund (IPF) of the Exchange, statutorily saddled with responsibility of compensating investors who suffer pecuniary loss made this known in Lagos on Wednesday.
Unveiling criteria for the compensation, the Board said, “158 claimants due to be compensated are investors whose claims were verified by The Exchange, approved by the Board of Trustees of the IPF, and whose identities were verified by an identity verification consultant engaged by the IPF.
“The claimants were found to be eligible for compensation in accordance with the relevant provisions of the ISA and the Investors’ Protection Fund Rules’’, the statement reads.
The Fund set a maximum compensation amount of N400, 000.00 (Four Hundred Thousand Naira) per claimant and the total amount approved by the trustees as compensation payment to the 158 investors amounted to is N42, 227,397.
Reacting to the development, Mr. Oscar Onyema, the Chief Executive Officer of NSE described the development as a milestone that “gives me great pleasure as it affirms our commitment to the continuous development of initiatives that will bolster confidence in the capital market’.
“Though the compensation payment may not be a complete restoration, it is a show of good faith on our part to investors’’, Onyema said.
