SEC Extends Multiple Subscription Regularissation Deadline to December

The Acting   Director General of the Securities and Exchange Commission (SEC), Ms. Mary Uduk last Friday urged   investors in the capital market that bought shares with different names to regularise their accounts in order to get benefits from their investments.

The DG  made the call  a press briefing after the second Capital Market Committee(CMC) meeting in  Lagos, following   the extension of the forbearance deadline to December 31, 2018.

According to her, during the banking and insurance sector consolidation between 2004-2007, there were a lot of issues in the primary market because the banks or insurance companies came to the market to raise funds and because a lot of people were coming to the capital market for the first time, they saw the market  as a place where they can make a lot of money so a lot of them bought shares in different names.

She added, “Today those shares are not in the system, because If you are unable to identify yourself properly those shares cannot be properly captured in the system.

“We are saying come and regularise that situation and get back your shares which are being warehoused somewhere. There is absolutely no punishment attached to it, the SEC is not punishing anybody.  We just want such individuals to come and regularise that transaction between now and 31st December 2018.

“The objective of doing that is that it will increase liquidity in the market because the shares are just there no trading on them, not only that, the investors cannot claim their dividends too and that increases unclaimed dividend. Let them come and regularise so that there will be increase in trading of those shares and they will also claim their dividends so that the balance of unclaimed dividends will also go down”.

Speaking on other highlights of the CMC meeting, Uduk disclosed it was    agreed that in addition to the physical delivery of annual reports and accounts, the existing pilot exercise of electronic distribution by public companies should continue, while efforts are made to enlighten shareholders and obtain their relevant e-mail addresses.

The meeting she said, also resolved that following the completion of the work by the Committee on Minimum Operating Standard, the commission would work with Trade Group Associations to implement the Committee’s recommendations.

“We also enjoined Trade Group Associations who are yet to register with the Commission should register immediately, while the Capital Market Operators (CMOs) are expected to register with their respective Trade Group Associations on or before December 31, 2018 and also devised to constitute a Market-wide Financial Technology (FINTECH) Committee to develop a FINTECH framework for the Nigerian Capital Market” she said.