Worried about the continued slide in global stock market, the Security and Exchange Commission (SEC) on Monday said caution should be the word in taking steps to stabilize the market.
Chairman of SEC, Senator Udo Udoma told the House Committee on Capital Market at an interactive session that two committees had been set up in addition to other steps taken by the Federal Government to respond to the crisis before it degenerates.
?There are lots of factors both locally and internationally responsible for the downward trend in the market, we shall do everything possible to restore the market, we need to be careful about what we do to stabilize the market,' he warned.
He argued that the situation in the nation's stock market has not reached the point of desperation requiring an injection of fund for its stabilization like it happened in other markets.
According to him, a bear market normally follows a bull market, adding that it was normal with a down market, insisting that government should be careful not to introduce panic measures that could make things worse.
As far as the Nigeria market is concerned, Senator Udoma assured that the fundamentals are good to restore hope of stable market.
In his presentation at the session, Director General of SEC, Alhaji Mustapha Al-Faki stated that as part of the efforts made by the Federal Government to find a solution to the crisis, Nigerian banks were to restructure existing facilities that were extended to licensed stockbrokers, institutional and individual investors for a longer repayment periods.
He also explained that Nigerian banks were to partner with market makers to inject funds into the capital market through appropriately structured credit facilities.
?The Presidential Advisory Team on the Nigerian Capital Market was to continue to meet regularly to articulate and implement medium to long term measures that are necessary for the healthy growth and development of the capital market.
Chairman of the House Capital market, Hon. Aliu Wadada said that the meeting became necessary so that both the committee and the regulatory agency could addressed the problem once and for all.