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Tag: SEC

  • SEC: e-dividend registration’ll boost liquidity

    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.

    Its Acting Director-General, Mary Uduk, stated this at an enlightenment programme on e-dividend and contemporary issues in the capital market held in Enugu, yesterday.

    The event which had as its theme: “Current Initiatives by SEC Nigeria to Enhance Investor Value” drew participants from various segments of the society.

    Represented by the its Head, Port Harcourt Zonal Office, Mr. Obi Adindu, the acting DG said the Commission is currently leading the entire capital market industry in an effort to migrate all shareholders to an e –dividend regime.

    She said: “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 said SEC is implementing various initiatives which are aimed at making our market deeper, vibrant and more effective.

    She said: “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 regularisation 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,” Uduak said.

  • SEC launches green bond’s rules

    The Securities and Exchange Commission (SEC) yesterday in Abuja, officially launched the Green Bonds issuance rules.

    Speaking on the occasion, its Ag. Director-General, Ms. Mary Uduk,  said as the country 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.

    She said: “The  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.

    The Director of Financial Markets at the Financial Sector Deepening Africa (FSD Africa), Dr Evans Osano, lauded SEC 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,” Dr Osano said.

    Also speaking, Africa Markets Programme Manager, Climate Bonds Initiative, Mr. Olumide Lala, said “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.”

     

  • We are working to improve investors’ confidence, says SEC

    The Securities and Exchange Commission (SEC) said ongoing implementation of its 10-year master plan and introduction of many key initiatives would address loopholes and help to improve investors’ confidence in the Nigerian capital market.

    Speaking yesterday at the opening ceremony of the SEC Journalists Academy in Uyo, Akwa Ibom, Acting Director General, Securities and Exchange Commission (SEC), Mary Uduk, reaffirmed that the Commission remains committed to developing the capital market.

    Uduk, who spoke on the theme, “Capital Market Master Plan: The Journey So Far”, noted that as a result of the market crash in 2008, investors have lost confidence and are yet to return to the market.

    She noted that the market was dominated by the banking sector which constituted 60 per cent of the market as at 2003 to 2007.

    According to her, 15 out of 20 most capitalized companies were banks, and 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.

    She revealed that the Commission had focused on leading the market to recovery and part of the recovery plan was the development of the 10-Year Nigerian Capital Market Master Plan (2015-2025) in collaboration with other stakeholders to map out strategies to improve key areas especially investor protection and education, among others.

    She explained that SEC aims to expand capital market’s role in nation’s economy development in general.

    As part of the implementation, she said the Commission has ensured that all share certificates are fully dematerialized, meaning that physical share certificates are now fully converted into electronic form in Nigeria, which has further enhanced market efficiency and transparency.

    “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,” Uduk said.

    She explained further that the National Investor Protection Fund (NIPF) that was established to compensate investors for pecuniary losses, boost confidence and encourage the domestic retail investors back to the market.

    “In the same vein, the e-Dividend Mandate Management System (eDMMS) was developed to reduce the quantum of unclaimed dividends in the market and also enable direct payment of investors’ dividends into their nominated bank accounts. So far, 2.55 million accounts have been mandated under this system,” Uduk said.

     

  • SEC commits to deepen capital market

    Securities and Exchange Commission (SEC)  has reaffirmed its commitment to its 10-year master plan which began in 2014.

    Its Acting Director-General, Ms Mary Uduk, who made this known yesterday at the SEC Journalists Academy in Uyo, said 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 the economy.

    She said: “It is our resolve to remain committed to developing our capital market in line with the 10-Year Master Plan.

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

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

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

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

    According to her, 15 out of 20 most capitalised companies were banks.

    “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.”

    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.

     

  • Financial inclusion will aid economic growth, says SEC

    Securities and Exchange Commission (SEC) has reiterated its commitment to pursuing initiatives that would aid financial inclusion of Nigerians as this is capable of growing the nation’s economy.

    Acting Director General, Securities and Exchange Commission (SEC,) Ms. Mary Uduk stated this in her remarks at the 2018 PEARL Awards Night held in Lagos.

    She said that SEC will continue to highlight and promote developments and trends in the Nigerian capital market and drive financial inclusion aimed at reducing adult exclusion from financial services.

    According to her, innovations in financial technology has made possible the potential of using digital tools to make financial services available to a wider range of consumers and enterprises, promoting financial inclusion and the affordability of financial services.

    “A financially inclusive society will provide increased access to finance, especially for women, help support sustainable growth—and will create million more jobs. The gains of having a more inclusive financial system are enormous, as it helps broaden financial markets and make policies more effective,” Uduk said.

    While commending the efforts of the Board of Governors and management of PEARL Awards Nigeria, for giving consideration to companies with good corporate governance practice in the award nomination process, Uduk also enjoined them that in future editions, emphasis should also be given to companies with technological innovation in the capital market, in the advent of the convergence of finance and technology (fintech).

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

    She noted that the forbearance window for shareholders with multiple subscriptions has been extended by another year from the previous deadline of December 31, 2018 to December 31, 2019, urging 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,” Uduk said.

     

  • SEC extends deadline for investors to regularise accounts

    The Securities and Exchange Commission (SEC) has  extended the closing date of forbearance to allow more investors to regularise their accounts. They now have up till December 31, 2019 to do so.

    This was part of the decision reached at the end of the third Capital Market Committee (CMC) meeting held in Lagos, yesterday.

    Recall that SEC had announced December 31 this year as deadline for the regularisation of multiple accounts.

    Briefing reporters, its Acting Director-General, Ms. Mary Uduk said the committee considered the issue and decided it is 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,” she said.

    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.

     

  • SEC, NSE, others for PEARL Awards

    The 2018 PEARL Awards will provide opportunities for capital market regulators and other key players in the economy to further interact on many developmental issues facing the capital market and the economy.

    Organisers of the Awards have confirmed that the event would be graced by the Acting Director-General, Securities & Exchange Commission, Ms. Mary Uduk, President, Nigerian Stock Exchange (NSE), Abimbola Ogunbanjo and elderstatesman, Ambassador Shehu Malami.

    Chairman, Senate Committee on Local Content, Senator Solomon Olamilekan, a Fellow of the Institute of Chartered Accountants of Nigeria as well as President, Chartered Institute of Stockbrokers of Nigeria, Mr. Ademola Adekoje, and President, Chartered Institute of Bankers of Nigeria, Dr. Uche Olowu, will also be among guests of honour.

    The event will also host chairmen, chief executives and top officials of major players in the capital market, captains of commerce and industry, regulators, diplomats and top government functionaries.

    Chairman, PEARL Awards’ Board of Governors, Dr Faruk Umar, said the award in the past 20 editions has grown in relevance and has become a major barometer for measuring the pulse of the Nigerian capital market.

    He stressed that the board and secretariat of PEARL Awards are pleased with the confidence reposed in the PEARL Awards by major stakeholders of the capital market  over the past more than two decades of rewarding corporate excellence with fairness, objectivity and integrity.

    President, PEARL Awards Nigeria, Mr Tayo Orekoya, said the 2018 edition is a major morale booster for firms whose effort in the post-recession Nigeria has kept key market index inching upwards, in spite of market and economic challenges.

    “There is no better time and platform for the performing organisations to be rewarded for wading through the low moments of the Nigerian economy than now and at PEARL Awards,” Orekoya said.

     

  • SEC, stakeholders review market situation

    Regulators, operators and other stakeholders in the Nigerian capital market are scheduled to meet today to discuss key initiatives that could impact on the recovery and long-term growth of the market.

    The third meeting of the Capital Market Committee (CMC) in 2018 under the auspices of the Securities and Exchange Commission (SEC) is scheduled to hold today at the Federal Palace Hotel, Victoria Island, Lagos.

    At the meeting, the CMC will consider reports from many of its technical committees and review the outlook for the Nigerian capital market in light of emerging developments. During the meeting, issues bordering on implementation of the 10-year capital market master plan as well as others relating to the capital market and the economy would be discussed and the outcome made known to the media.

    The 10-year master plan for the Nigerian capital market, which is expected to refocus the market and help double its size over time and grow the economy, was unveiled in November 2014.

    The CMC, chaired by the Director-General, Securities and Exchange Commission (SEC), comprises chief executives of all registered capital market operators, including stockbrokers, solicitors, custodians, fund managers, issuing houses, rating agencies, registrars, reporting accountants, trustees and consultants, among others.  Other members included chief executives of the Chartered Institute of Stockbrokers (CIS); Nigerian Stock Exchange (NSE); Abuja Securities and Commodity Exchange (ASCE) and Central Securities Clearing System (CSCS).

    The CMC also included two members each from observer groups, which included Asset Management Corporation of Nigeria (AMCON); Central Bank of Nigeria (CBN); Corporate Affairs Commission (CAC); Debt Management Office (DMO);  Federal Ministry of Finance; Federal Mortgage Bank of Nigeria (FMBN); Federal Inland Revenue Service (FIRS); Nigerian Deposit Insurance Corporation (NDIC); Investment and Securities Tribunal (IST); Nigerian Investment Promotion Council (NIPC); National Insurance Commission (NAICOM); National Pension Commission (PenCom) and FSS2020.

    The CMC was established to serve as a medium for exchange of ideas among market stakeholders as well as for feedback on how to continuously improve the market activities and regulation. The CMC meets every quarter to deliberate on various issues affecting the market and other policy matters.

     

  • SEC, NERDC step up efforts on capital market studies in schools

    Securities and Exchange Commission (SEC) and the Nigerian Educational Research and Development Council (NERDC) have moved a step further in the efforts to include capital market studies in the curriculum for the basic and senior secondary schools in Nigeria.

    SEC and NERDC on Monday held a planning and writing workshop for the development of capital market studies curriculum (CMSC) for basic and senior secondary schools. The workshop followed the conclusion of the contents selection stage of the curriculum development.

    Speaking at the workshop in Lagos, Acting Director General, Securities and Exchange Commission (SEC), Ms. Mary Uduk restated the commitment of the Commission to further educate and enlighten investors in the Nigerian capital market to enhance their ability to make informed investment decisions.

    She said that the Commission has been in the vanguard of inculcating financial literacy for quite a long time because the SEC has realised that it is very important for students to imbibe the culture and habit of being financial literate and to be familiar with the operations of the capital market.

    According to her, the partnership with NERDC to actualize this ground breaking capital market literacy programme is part of SEC’s effort at vigorously pursuing the implementation of one of the essential initiatives of the 10-year Nigerian Capital Market Master Plan.

    Uduk said the implementation programme kick-started with the signing of a Memorandum of Understanding between the Commission and the NERDC in 2016, to develop a Standalone Capital Market Studies (CMS) curriculum for infusion into Basic and Senior Secondary Schools.

    She said the Commission recognizes the efforts required for other stages of the programme and remain confident that with the active support and commitment of all stakeholders the project will be completed.

    In his welcome address, Executive Secretary National Educational Research and Development Council (NERDC) Prof Ismail Junaidu said the capital market connects the financial sector with the real sector of the economy and in the process, facilitates real sector growth and economic development adding that it increases the proportion of long term savings that are channeled to long term individuals/households and channels them into long term investments and fulfils the transfer of current purchasing power from surplus sectors of the economy to deficit sections.

     

  • ‘GNI has not erred against SEC, NAICOM rules’

    Great Nigeria Insurance Plc has never received any warning, query or sanctions regarding insider trading from the Securities and Exchange Commission (SEC) or National Insurance Commission (NAICOM), which both provide regulatory framework for the company, Managing Director of the underwriting firm, Mrs. Cecilia Osipitan, has said.

    This followed allegations by the House of Representatives Sub-Committee on Capital Market and Institutions, following the public hearing on Wednesday, October 31, 2018.

    Mrs. Osipitan in a statement  in Lagos, said the allegation by the Sub-Committee was incorrect.

    She said it has come to the notice of the Board of Directors and Management of GNI that the House of Representatives Sub-Committee on Capital Market issued a statement on Monday, November 5, 2018 threatening to authorise SEC to take over the Management of GNI.

    She assured the company’s shareholders and the public that the organisation was compliant with all the rules and guidelines of the various regulatory agencies that oversee its operations making all the allegations of insider dealings, failure to pay shareholders’ dividends, tax evasion and failure to comply with corporate governance regulations inaccurate.

    She stated that the restructuring process put in place by the Board and management has boosted the firm’s retained earnings of circa from (N2.4billion) in 2009 to (N0.59billion) in 2017. This improvement in retained earnings was achieved through organic growth only.

    She added that the firm has also been meticulous about making tax remittances to both the state and Federal Government and has up-to-date receipts to corroborate this fact.

    While allaying the fears of all stakeholders, she said the firm will ensure that the misconception regarding its operations will be resolved with the Committee.

    She explained that the inability of the firm’s representative to attend the Committee’s meeting was unavoidable and same was duly communicated to the Committee. She further stated that the firm has forwarded to the Committee written detailed responses to all questions raised to set straight earlier communicated misrepresentations and will be willing to answer further questions that may arise.

    “Great Nigeria Insurance Plc is a compliant corporate entity and is not in any way associated with any of the allegations raised in the publication,” she said.