In a bid to attract more investors to the Nigerian capital market, the Nigerian Stock Exchange, NSE, has decided to scrap the 0.06 per cent charge on the Trade Alert service from March 2014.
While the management of the exchange scraps the old alert system, it has introduced X-Alert, an enhanced notification system, which will be charged at a flat fee of N4 per transaction to replace the old notification system.
Based on the annual cost of the alert paid by investing public in 2013, the cost of the service would reduce from N1.25 billion to N5.52million based on a N4 flat fee. That is a reduction of N1.24 billion per annum in the cost incurred by investors during transaction in the market.
Ade Bajomo, executive director, market operations and technology, NSE, noted that the enhanced X-Alert is a service that will allow the investing public know when a transaction has been made on their account. “Each time investors buy or sell a security, an alert is sent to them via a Text Message to the recipient’s mobile phone or via an e-mail to the recipient’s mailbox. So what that does is to bring real time notification plus transparency to the market at market rates while safeguarding against unauthorised sale or purchase of securities,” said Bajomo.
Casting more light on the development, Kyari Bukar, managing director, Central Securities Clearing System, CSCS, explained that the enhanced service is delivered in real time to customers.
He also urged that all customers should provide their stockbrokers with up to date mobile phone numbers and email accounts to enable the notification system work effectively and provide timely update on all account transactions.