The Securities and Exchange Commission, (SEC) has announced an extension of forbearance on accounts with multiple shares subscription to December 31, 2019 to ensure more investors regularise their accounts thereby reducing the volume of unclaimed dividends in the Nigerian capital market.
This among others was part of the decision reached at the end of the 3rd Capital Market Committee, CMC meeting.
Recall that the SEC had announced December 31st 2018 as deadline for regularisation of multiple accounts.
A statement from SEC quoted the acting Director General of the SEC, Ms. Mary Uduk to have said that the committee considered the issue and decided it’s best to give investors more time to regularise their multiple accounts in order to derive the benefits from their investments.
She said “I am delighted to report that on the lingering issue of multiple subscriptions and forbearance for shareholders with multiple accounts, the CMC agreed that the forbearance window should be extended by another year from the December 31, 2018 deadline previously communicated. We expect investors to take advantage of this opportunity to claim their unclaimed dividends and bonuses”.
Uduk also announced a two-pronged approach to addressing the intractable challenges associated with transmission of shares related to the estate of deceased investors.
“The first step would involve engagement with and enlightenment of the Probate Registry with a view to providing solutions to the cumbersome process of transmitting shares.
“Secondly, Rules would be developed around the time frame for transmission shares and the fee structure”
Worried by issues of identity theft in the capital market, the Acting DG said the Commission will work with other major stakeholders in setting up a committee that will look into and proffer solutions to problems around identity management in the Nigerian capital market.
Similarly, Uduk said as part of efforts to eliminate underhand dealings, the Commission is set to take enforcement actions against any persons engaged in trading in the shares of public unlisted companies outside a recognised securities exchange as provided by the rules.
On the need to grow the market for trading in securities on unlisted public companies, she said the Commission is making concerted efforts in collaboration with CAC and other stakeholders to assist public companies that are yet to register their securities to do so without much difficulty.
“In furtherance of the commitment to develop a vibrant Commodities eco-system, the Commission has commenced the implementation of measures to strengthen regulatory capacity by establishing a Commodities Division. Other recommendations of the Committee have been broken down into implementable plans with set timelines,” Uduak said.
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