Some capital market shareholders have faulted the Nigerian Stock Exchange (NSE) over the introduction of X-Alert in place of Trade Alert without consultations with market stakeholders.
They said in separate interviews with the News Agency of Nigeria (NAN) that the exchange and the Central Clearing Securities System (CSCS) needed to consult with investors before migrating to X-Alert.
NAN reports that X-Alert is a new and improved notification system which will provide investors with details of transactions on an investment account via a text message or e-mail.
Mr Boniface Okezie, President, Progressive Shareholders Association of Nigeria, told NAN on Thursday in Lagos that the exchange should educate stakeholders on the merits of X-Alert before its introduction.
Okezie said the major aim of the product would be defeated because most local investors were not aware of X-Alert.
He said the NSE had failed to carry investors along in most of its initiatives and strategies.
Okezie said that investors should be consulted because they were the ones that would pay for the services.
Alhaji Gbadebo Olatokunbo, a founding member, Nigeria Shareholders Solidarity Association, said that NSE and CSCS should ensure effective implementation of the new product.
Olatokunbo also called for proper investor education for effective utilisation of the benefits of the new product.
He said that CSCS should ensure proper training of its personnel to ensure that all subscribers to X-Alert were alerted promptly.
NAN reports that X-Alert, according to the Exchange, would reduce the amount investors pay for alert on transactions by N1.24 billion.
It said that the current charge of 0.06 per cent on every transaction on the NSE would be scrapped.
It added that the trade alert would be replaced with an enhanced notification system, X-Alert, which became effective this month and would charge a flat fee of N4 per transaction.