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Tag: Mary Uduk

  • E-dividend registration will Boost liquidity – SEC

    The Securities and Exchange Commission, SEC has enjoined more Nigerians to take advantage of the on-going  e-dividend registration in a bid to reduce the unclaimed dividends profile as well as increase liquidity in the capital market and the economy.

    Acting Director General of the SEC, Mary Uduk, stated this at an Enlightenment program on e-Dividend and contemporary issues in the Nigerian Capital Market held in Enugu, Thursday.

    The event which had as its Theme: “Current Initiatives by the Securities and Exchange Commission, SEC Nigeria to Enhance Investor Value” drew participants from various segments of the society.

    Represented by the Head, Port Harcourt Zonal office of the SEC, Mr. Obi Adindu, Uduk disclosed that the Commission is currently leading the entire capital market industry in an effort to migrate all shareholders to an E –Dividend regime.

    According to her, “The essence of the E-Dividend Mandate Management System is to eradicate or reduce to the barest minimum the incidence of unclaimed dividend. Unclaimed dividend is an undesirable feature of the Nigerian capital market which denies investors/shareholders the gains of participating in the capital market. It denies the economy access to the huge amount of money which should have accrued to shareholders and would have gone into circulation to oil the wheel of the economy.

    “It is a consequence of the bottlenecks which are inherent in the erstwhile paper dividend warrant regime such as postal system inefficiency, change in investors’ addresses, poor fidelity and human fallibility in dividend payment processes, amongst others.

    She stated that the E–Dividend regime bypasses these limitations by ensuring that dividends which do not exceed 12 years of issue are credited directly to an investors account after declaration by the paying company and within a stipulated payment period through simple interbank transfer.

    The E-Dividend registration exercise started on November 23, 2016. Each successful registration cost N150, however, between that time and March 31, 2018, the Commission underwrote the registration cost for all investors that mandated. It is my pleasure to let us know, that a total of 2.4million accounts had been mandated.

    “May I therefore implore you all to key into the E-Dividend registration exercise by visiting the nearest bank branch or registrar. In addition to migrating to the E–Dividend regime yourselves, kindly tell everybody you know to do same in their best interest.

    “I am informed that some registrars are present at this forum. I implore us to visit them and take advantage of the services they are providing to register for your E-Dividend, here and now” she stated.

    Uduk also disclosed that the SEC is implementing various initiatives which are aimed at making our market deeper, vibrant and more effective.

    According to her “The forbearance window for shareholders with multiple subscriptions has been extended by another year from the December 31, 2018 deadline previously communicated. Consequently, we enjoin those who have not come forward for the regularization of shares purchased with multiple identities, to do so.

    “We have also developed 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”.

  • SEC launches green bond rules

    The Securities and Exchange Commission (SEC) officially launched the Green Bonds issuance rules at a ceremony on Monday.

    Speaking at the launch of the rules, Ms. Mary Uduk, Ag. Director-General, SEC stated that, “As Nigeria strives to harness the resources of non-oil sectors to anchor the transition to a more resilient economy, there is the urgent need to close the country’s infrastructure gap with investments in sustainable finance initiatives.

    “The SEC’s release of the green bond rules is a significant step in furthering the complementary efforts of the government, regulators and the financial services industry to direct financial capital to more sustainable economic activity”.
    Green bonds are special bonds issued to finance or re-finance in part or in full new and existing eligible environmental or climate projects.

    According to Dr Evans Osano, Director of Financial Markets at the Financial Sector Deepening Africa (FSD Africa): “We laud SEC Nigeria for the professional and quick turnaround in the preparation of the guidelines.

    “The new guidelines are prepared in line with leading international guidelines and standards providing confidence to domestic and international investors.

    “It also provides certainty to issuers of green bonds in Nigeria. FSD Africa is pleased to have supported this process which is a milestone for the Nigeria green bonds market”

    Mr. Olumide Lala, Africa Markets Programme Manager, Climate Bonds Initiative, explained that “the launch of the rules brings much needed clarity and guidance on the issuance of green bonds.  Adopting the tenets of the Green Bond Principles and Climate Bonds Standard makes it easier to attract foreign investment where needed.”

  • SEC takes e-Dividend campaign to South East

    In a move to further enlighten investors and the general public on the process and benefits of e-Dividend, multiple subscription, e-processes and other contemporary issues in the Nigerian Capital Market, the Securities and Exchange Commission (SEC), will be holding a Town Hall meeting with stakeholders and the general public in Enugu.

    The event which has as its Theme: “Current Initiatives by the Securities and Exchange Commission, SEC Nigeria to Enhance Investor Value”, is expected to draw participants from various segments of the society.

    The meeting is scheduled for Thursday December 6, 2018 at Hotel Sylvia, No. 66 Ezillo Avenue, Independence Layout, Enugu State.

    Registration of participants starts by 9:00 am while the main event starts at 10:00 am.

    The event will create an avenue for the Apex capital market regulator to educate and enlighten the public on the above subject and also for operators, stakeholders and various investors to interact and discuss other issues surrounding the activities of the capital market.

    Recall that the SEC in January 2015 commenced the e-dividend registration campaign in Abuja with a road show culminating in a town hall meeting.

    Read Also: We are working to improve investors’ confidence, says SEC

    The event will also provide an opportunity to throw more highlights on investment opportunities available in Nigerian Capital market and how retail investors can benefit therein.

    The Commission had announced that the e-dividend registration would continue seamlessly in spite of the expiration of free registration deadline and also enjoined investors yet to enroll, to continue with the registration at a cost of N150 only.

    “Investors should continue to approach their banks or registrars, as usual, to seamlessly mandate their bank accounts for the collection of their dividends electronically, including unclaimed dividends, not exceeding 12 years of issue; as the N150 would not be demanded from them at the point of registration.

    “Also, the Commission recently extended the forbearance period for regularization of multiple share subscription to another one year after the expiration on 31st December 2018.”

    Acting Director General of the Commission, Mary Uduk disclosed this in her address at the 3rd and final Capital Market Committee(CMC) meeting held for the year 2018 in Lagos.

    “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”, she said.

    The SEC boss called on investors to take advantage of this opportunity to claim their unclaimed dividends and bonuses before the expiration of forbearance period.

  • SEC reaffirms commitment to deepen capital market

    Securities and Exchange Commission (SEC) in its moves to deepen the Nigerian Capital Market and bolster liquidity has reaffirmed its commitment to its 10-year master plan which began in 2014.

    Ms Mary Uduk, the Acting Director-General, SEC, who made this known on Thursday at the SEC Journalists Academy in Uyo, explained that the Nigerian Capital Market Master Plan (2015-2025) by the Commission in collaboration with other stakeholders was to improve key areas especially investor protection and education, professionalism, product innovation, and for the expansion of the capital market’s role in Nigeria’s economy.

    According to her, “It is our resolve to remain committed to developing our capital market in line with the 10-Year Master Plan.”

    “In March 2008, market capitalization reached a then all-time high of N12.6 trillion. Specifically, in 2005/2007, recapitalizing banks and insurance companies raised over $10 billion from the capital market.

    “However, the All-Share Index (ASI) dropped by 52.6% by December 31, 2008 from the high in early 2008 while average daily trading volume also dropped by about 77% of high levels.

    “The Nigerian stock market between March 5 and December 31 2008 therefore lost about N5.7 trillion, or 45.1% in value,” she said.

    This she explained was due largely to dominance and concentration of the market by the banking sector which constituted 60% of the market then.

    According to the SEC boss, “15 out of 20 most capitalized companies were banks.

    Read Also: SEC urges shareholders to dematerialize certificates

     

    “Risk management and corporate governance was not developed enough to support the fast growth thereby leading to inappropriate market behavior and abuse of margin lending.

    “One of the resultant effects of the downturn was loss of confidence in the market by investors and since then they have not fully returned to the market.

    “Meanwhile, from 2008 to date, the Commission had focused on leading the market to recovery.”

    Cross Section of the Participants at the SEC Journalist Academy 2018 held in Uyo, Akwa Ibom

    Dematerialization, e-dividend, and Direct Cash Settlement were some of the sundry initiatives by the Commission to ensure that the market not only recovers, but thrives to become Africa’s most efficient Capital Market.

    “The recapitalization of capital market operators was aimed at improving the baseline infrastructure of the CMOs, improves their market access and service delivery as well as enable them comply fully with the New Minimum Operating standard set by the Commission.

    “These were aimed at helping the market develop robust controls; strong governance framework and effective human capital.

    “As at December 30, 2016 which was the deadline given for all CMOs to recapitalize, 384 out of 449 CMOs had fully complied. More of them have done so afterwards.

     

    “Similarly, the National Investor Protection Fund (NIPF) was established to compensate investors for pecuniary losses, boost their confidence and encourage the domestic retail investors back to the market,” she said.

  • SEC extends multiple subscription deadline to Dec 2019

    ……. Pledges to tackle identity theft

     

    In a move to ensure more investors regularize their accounts thereby reducing the volume of unclaimed dividends in the Nigerian capital market, the Securities and Exchange Commission, SEC has announced an extension of forbearance on such accounts to December 31, 2019.

    This among others was part of the decision reached at the end of the 3rd Capital Market Committee, CMC meeting held in Lagos, Thursday.

    Recall that the SEC had announced December 31st 2018 as deadline for regularization of multiple accounts.

    Briefing newsmen, Acting Director General of the SEC, Ms. Mary Uduk said the committee considered the issue and decided its best to give investors more time to regularize 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.

    “An interesting development in the commodities sector is the innovative solution developed by AFEX Commodities Exchange Limited (AFEX) and its partners regarding the use of Blockchain Technology to streamline the process of financing agriculture to Smallholder farmers and other players in the commodities markets” she added.

    In order to boost the e-dividend mandate and Direct Cash Settlement initiatives, Uduk said the Commission gave a commitment to the market that it would engage NIBSS (Nigeria Inter-Bank Settlement System) on behalf of the capital market community to facilitate identity validation and account validation in an effort to enhance market processes.

    She also disclosed that the market provided an update on the Electronic distribution of annual accounts by public companies to shareholders and it was reported that the shareholders have largely accepted the new initiative and are willingly providing their email addresses. It was agreed that further sensitization would be carried out by stakeholders to enlighten shareholders on the benefits of the initiative.

  • SEC to regulate technology application in capital market – Uduk

    In its desire to transition towards a technology driven capital market as well as protect investors, the Securities and Exchange Commission, SEC, has said that the Commission would soon come out with regulations that would guide such products in the capital market.

    This was disclosed by the Acting Director General of the SEC, Ms. Mary Uduk during the presentation of a Lecture by Mr. Ade Bajomo, Vice President FinTech Association of Nigeria titled “Market Impact of the FinTech Revolution” in Abuja, Wednesday.

    Uduk who also announced Bajomo as Chair of the Capital Market Committee on Fintech Roadmap for Capital Markets in Nigeria, said the SEC as the apex regulator of the Nigerian Capital market is interested in investments that Nigerians are making especially with the advent of digitalization.

    “If we will regulate this market and understand what is happening we need our staff to understand the rudiments of FinTech. Very soon the whole world will move to technology for regulation. Other jurisdictions have already gone far into it with some of them already amending their rules in that direction.

    Read Also: SEC assures foreign investors of dynamic and transparent market

    “The International Organization of Securities Commissions (IOSCO) is on it and there is a lot on it already all over the world and we can’t be left behind. We are very much interested in some of the most active areas of Fintech innovation like block chain technology, crypto currencies and how they affect investors” she said.

    She stated that as regulators of the capital market, it is the responsibility of the SEC to find out how such investments are going on and if they meet set standards because when investors lose money they will come back to the SEC adding “That is why we are seeking to understand what FinTech is all about to enable us regulate the market properly. recalled that during the last Capital Market Committee meeting in Lagos, the Committee agreed to set CMC to set up a Committee to draw a Fintech Adoption roadmap for the Capital Market.

    The SEC Boss alluded to the growing influence of Fintechs as she stated the need for the Capital Market to take advantage of the Fintech offerings in moving the Capital Market forward. She equally emphasized the focus of the Commission on capacity building, knowledge sharing, advocacy and collaboration with relevant entities.

    According to her, “the Capital Market needs to create an enabling environment that is attractive enough for Fintechs to innovate as the Market should engage actively with the new trend in technology and provide the adequate regulatory framework for proper adoption of suitable technology and that is one of the reasons why we have invited FinTech here today for this presentation”

  • SEC assures foreign investors of dynamic and transparent market

    The Securities and Exchange Commission ( SEC ) Nigeria, has assured foreign investors of the safety of their investments in the Nigerian capital Market.

    Disclosing this when representatives of JP Morgan and Stanbic IBTC visited the Commission in Abuja weekend, Ag. Director General of SEC, Ms. Mary Uduk said all necessary controls are in place to ensure that the market is dynamic, free, fair and transparent for participants.

    Uduk said the Commission has embarked on several initiatives in a bid to ensure that investors in the market derive the benefits therein.

    She said the implementation of the Capital Market Master Plan has led to significant changes in the market. Some of these implemented initiatives are dematerialization of share certificates, recapitalization of capital market operators, establishment of the National Investors Protection Fund and inauguration of its board, as well as launch of the Corporate Governance Scorecard.

    Others are implementation of the e-Dividend Mandate Management System, establishment of Complaint Management Framework, transaction cost reduction, implementation of the direct cash settlement and the introduction of non-interest capital market products.

    The Ag. DG disclosed that the Commission has put in place a robust investor protection machinery with severe sanctions on infractions of securities laws.

    “The implementation of this regime has led to the closure of various Ponzi schemes as well as the recovery of millions of naira belonging to innocent investors.

    “SEC champions zero tolerance on infractions and we have a range of sanctions depending on the level of infraction and how egregious the breach is, ranging from warnings, fines, suspensions, withdrawal of registrations and jail terms.

    “The idea is to improve transparency in the market and ensure that investors are safe”.

    On surveillance, Uduk said the Commission has surveillance mechanisms in place to detect possible suspicious trading/market manipulation activities.

    In his remarks, Nick Long, Representative of JP Morgan, expressed satisfaction with the performance of the Nigerian capital market adding that it is one of the reasons why it continues to attract international investors.