The apex regulator of the Nigerian capital market, the Securities and Exchange Commission, has said shareholders who buy shares with fake and unverifiable names and cannot provide clear proof of ownership, will lose their entire holdings covered in the deals.
This development, which is the offshoot of the technological revolution currently happening in the market, will see affected shares and their accruing dividends being transferred to the Nigerian Capital Market Development Fund.
The regulator also said henceforth, people who acquired shares using unverifiable names would be prosecuted.
These were some of the resolutions of the Capital Market Committee meeting held in Lagos, the Director-General, SEC, Mournir Gwarzo, said while addressing newsmen on Wednesday.
Meanwhile, the equities market appreciated by N273bn on Wednesday as the Nigerian Stock Exchange market capitalisation closed at N9.522tn from N9.249tn.
A total of 584.119m shares worth N5.651bn were traded in 5,121 deals.
The SEC DG stressed, “Investors who joggled their names for the purpose of multiple subscription should be given a forbearance period of six months within which they can lay claims to both their shares and accruing dividends subject to establishment of their identity and a verification process by the SEC; failing which such shares and accruing dividends shall be transferred to the Nigerian Capital Market Development Fund.
“The shares and accruing dividends of non-existent shareholders will be forfeited and transferred to the NCDMF also; and going forward, any person who engages in such act shall be prosecuted.”
He said the June 30 deadline for migration to the electronic dividend platform was sacrosanct, adding that there would be no dividend warrant issuance after the date.
The SEC boss revealed that there would be adoption and application of the transaction fee structure for SEC, the Nigerian Stock Exchange, issuing houses and receiving agents as presented by the commission, adding that the fee structure would be operated as a pilot scheme for a period of one year, after which its impact would be reviewed with a decision on either its continuance or discontinuance.