Abstract:
For the 38 years of the establishment of the Nigerian Capita Market, activities involving transfer of share were manually done. As it is common in manual operations, there existed loopholes for people to exploit. Apart from delayed and failed trades, there was fraud involving stealing/diversion of share certificates by some personnel or stock broking firms and register firms with the collusion of their external collaborators. Since it took between six mouths and one year for investors to receive their share certificate (as evidence of membership of a company), they lost so many opportunities to take advantage on returns on their investments particularly in capital appreciation. These bottlenecks made the market very unattractive to both local and foreign investors. For it to be attractive, therefore, there arose the need for the trading mechanism to be scientific that is, automated to meet the standards of the other emerging markets, if not, those of advanced economies…
