Economy

FMDQ says new CAMA will change Nigerian financial markets

Published

on


FMDQ Securities Exchange on Monday said the new Companies and Allied Matters Bill 2020 asserted to by President Muhammadu Buhari would reposition Nigeria as a compelling destination of capital.


Mr Bola Onadele,  FMDQ Group Chief Executive Officer, said in Lagos that the country’s financial market and the economy would receive the long-awaited boost to spur economic development with the new CAMA.

The News Agency of Nigeria   reports that Buhari on Aug. 7 in Abuja assented to the CAMA Bill, 2020 recently passed by the National Assembly.

The Bill, now Companies and Allied Matters Act, 2020, repeals and replaces the extant Companies and Allied Matters Act, 1990, and introduces several corporate legal innovations aimed at enhancing ease of doing business in the country.

Some of such innovation are reduction in filing fee and other reforms to encourage small and medium enterprises; provisions for the establishment of private companies with a single shareholder and limited liability partnerships and limited partnerships, among others.

Onadele said the new CAMA, when implemented, would usher in a new wave of innovative developments in the Nigerian financial market and as well improve the ease of doing business in the country.

“With the increasing sophistication of the global financial markets comes the need for domestic markets to develop their architecture and infrastructures to support requisite advancement as well as align with international standards, and the new CAMA 2020 will position Nigeria and its capital market at par with its international counterparts.

“Chief of the several impactful provisions in the CAMA 2020, is the inclusion of netting and bankruptcy remoteness provisions which signal the birth of a new financial market in Nigeria.

“The CAMA 2020 commendably sets the tone for the actualisation of key innovations in the market, providing enabling legal backing for netting, bankruptcy remoteness and attendant regulatory frameworks for the smooth functioning of financial markets in Nigeria,” Onadele said.

He noted that these game changing provisions would cure critical legal deficiencies that hitherto affected the development of the financial markets.

Onadele said that the netting provisions in the CAMA would address the credit risk challenges, operational and legal bottlenecks of gross settlement for spot and derivatives transactions.

“The Act is instrumental, in no small measure, to the successful takeoff of the derivatives market in Nigeria, a much-desired development, which will provide, amongst others, a wide range of risk management opportunities,” he added.

He said the derivatives market would enhance market liquidity, improve price discovery, reduce risk capital charges and transaction costs as well as increase financial markets stability.

Onadele said, “FMDQ Clear, Nigerian’s first central clearing house (CCH), is well positioned to providing the much-needed central counterparty services, upon regulatory approval, and has proactively set aside a default resolution reserve with a near-term target of ₦20 billion.”

Edited By: Oluwole Sogunle (NAN)

https://nnn.ng/fmdq-says-new-cama-will-change-nigerian-financial-markets/

Edo election: Presiding officers insist on no face masks, no voting Edo 2020: Massive turnout of voters witnessed at polling units Troops rescue 22 kidnapped victims in Zamfara, Katsina Restriction order in Edo: Motorists, travellers stranded in Okpella FEMA alerts Abuja residents of severe flood Ibadan Poly sacks lecturer over alleged sexual misconduct Edo governorship election begins orderly amid massive securirty, movement restriction COVID-19: NCDC announces 221 new cases, total infections rise to 56,956 Women affairs minister urges Ebonyi Govt. to check early girl-child marriage Reed grabs halfway lead, as Tiger misses cut at United States Open Aguero could be out of action until November, Guardiola says Whirlwind Bayern Munich dismantle Schalke 8-0 in season opener FG set to support 1.7 million businesses, individuals — Minister Niger Govt opens Minna-Bida road to articulated vehicles Laloko wants 25% of local players in Super Eagles Divers rescue 5 as bus plunges into river in Ebonyi Visa Ban: FG says sanctioning electoral offenders disrespectful to Nigeria’s sovereignty Edo 2020: PDP Reps caucus condemn seige on governors by security agents APC receives former Saraki commissioner, others in Kwara Lawmaker promises APC befitting secretariat in Kwara 1,000 fans at Italian Open better than none, says Djokovic Enugu ex-governors Nnamani, Chime in closed door meeting Tinubu greets Lagos dep gov, Hamzat, at 56 Ondo 2020: Jedege advises citizens to reject violent politicians with votes Sanwo-Olu fecilitates with deputy at 56 COVID-19 FG will support MSMEs with N75bn loan — DG SMEDAN Ondo 2020: Speaker receives SDP, ADC Councillorship candidates in Ifedore Edo election: Group lauds committee over peace accord LASG plans establishing fashion hubs in Lagos Central, East Group condemns alleged vote buying video ahead Edo poll NIMR unveils COVID-19 molecular testing kit PDP alleges harassment of its governors in hotel, tells IG to vacate officers Pomp, pageantry as Akran of Badagry turns 84 Edo: INEC Chairman warns staff members against partisanship MPC: Financial experts seek monetary, fiscal policies alignment  Save us from DPO’s alleged abetting of criminals, 1004 Estate residents beg FG Edo Election: Yiaga Africa to adopt PVT methodology to check credibility of election results  Nasarawa Govt inaugurates 18-man committee on education sector Nigeria, EU envoys meet to resolve access to airspace, travel ban JOHESU strike: Medical, business activities cripple at AUTH Gwagwalada Institute wants stakeholders to develop useful curriculum in education Open Defecation: FG to use educational institutions to enlighten Nigerians NNPC shortlists 78 companies for pipelines rehabilitation bidding Flooding: Sultan visits Kebbi, seeks FG’s urgent assistance for victims NSCDC arrests 19 suspected rapists in Kaduna   Recapitalisation: AIICO not resting in its drive — MD Gov El-Rufai urges NIPSS Alumni to find solutions to banditry Edo election:Prices of livestock increase in Benin markets Strike: National Hospital Abuja witnesses low patronage Domestic oil refiners urge FG to establish modular refineries in Niger Delta