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Tag: SEC

  • SEC warns against online retail forex trading

    Securities and Exchange Commission (SEC) has warned investors of the potential danger in retail online foreign exchange (forex) trading.

    In a circular, SEC noted the increase in advertisements in electronic and other media asking investors to engage in leveraged online retail forex trading.

    “The public is hereby advised that online retail forex trading is currently unregulated and consequently may be subject to abuse. Until a framework for regulation of online retail forex trading is developed by the SEC, any person participating or engaged in such investment activity does so at his or her own risk,” SEC stated.

     

  • Coming elections to blame for poor stock market performance-SEC

    The coming elections have been identified as one of the factors the Nigerian Stock market has not been doing well lately.

    This revelation was made by the Acting Director General of the Securities and Exchange, Ms. Mary Uduk, in Bali Indonesia during the International Monetary Fund (IMF)/World Bank meetings.

    The SEC boss also said another contributory factor for the poor performance of the market can be traced to “the outflow of foreign investment which has led to sell pressure accumulating into depressed prices.”

    Uduk noted that the stock market was underperforming as a result of “the upcoming election which might have made some investors to hold back their investments and sell or adopt a wait and see strategy until after the elections.”

    However she assured that the Securities and Exchange Commission (SEC) does “not take for granted the presence of foreign investors in our market because they bring with them transparency and liquidity that comes with it.”

    The SEC, she added, is “also very particular about our domestic investors as they are the foundation of the market. When these foreign investors leave, they are the ones that are here and still make us have a market.”

    To protect the market, sustain confidence, Uduk stated that the SEC has “certain initiatives that we have come up with to build confidence and encourage their participation. One of them is zero tolerance on market infraction. We have also put in place Complaint Management Framework; we have in place other initiatives like Risk Based Supervision as well as the ongoing e-dividend mandate and Direct Cash Settlement.”

    Going forward, the Nigerian government, she said, “will need to consider the impact of borrowing activity on private sectors, when government borrows, private cannot borrow because interest goes up.”

    “Another thing is for government… to see how they can ramp up their revenue.

    You can do this by looking at the kind of partnerships you can go into.

    Another solution is the sustainability of domestic and foreign debt. Also, government could check if there are projects that can be finished by the private sector. Government needs to pay attention to exchange rate risk, debt service payment and see the kind of collaboration that can be done among others,” she suggested.

    As regulators, the SEC, she said, understands the importance of foreign investors for market efficiency, liquidity and transparency. “However it’s also important for us to develop local investors by building their confidence and encouraging their participation.”

    On SEC’s zero tolerance to infractions in the market, she said, “If you don’t tolerate infractions, investors will know that somebody is watching their back. We have other initiatives like e-dividend, Direct Cash Settlement which are all geared towards encouraging investors in the Nigerian capital market.”

    With regards to the e-dividend exercise, the SEC Ag. DG disclosed that “as at the last Capital Market Committee (CMC) meeting in August, 2.55m investors have registered; we will get an update on that figure during the next CMC in November.”

    Asked why e-dividend exercise is slow, Uduk said there was no known reason for the slow pace of the exercise, stressing that “we have not received any complaint from investors on why the process is not as fast as it should. What I want to believe is that those that have not yet come may probably not have heard about it and that is why we are pushing on with the enlightenment programmes in respect of that. We are working to improve the awareness and I am expecting that more people will be enrolled on the platform.”

     

  • Financially excluded a minus to our GDP, says SEC

    Securities and Exchange Commission (SEC) has lamented the non-participation of the grassroots in the financial sector, saying this has affected the Gross Domestic Product (GDP) of the country.

    SEC’s Acting Director-General, Ms. Mary Uduk, stated this during its financial inclusion sensitisation programme in Gwagwalada Area Council, Abuja, yesterday.

    Ms. Uduk, who was represented by Head of Investor Education, SEC, Francis Okafor, said the sensitisation programme hopes to enlighten those at the grassroots, and educate them on how to invest in the Capital Market and the financial industry.

    She said the target of the Commission is to ensure that by the end of this year, every area council in Abuja hss been reached.

    “The last sensitisation programme for this year will be held in Abaji Area Council. We want to ensure that by the end of this year, every area council in Abuja is reached.

    “If you buy shares, you are sure to get it back (dividends). Pension is not only for civil servants, but also for business people through the Micro Pension Scheme; that is why we have partnered PenCom.

    “In Kano we talked about commodity ecosystem and non-interest finance. It was quite successful in Kano.

    “Commodity Ecosystem is all about commodities – agricultural products. In the hay days of this country, we had things like the groundnut pyramids etc., today, those thing have died down. Beyond oil, Agriculture is a sector that can bring this country into limelight.

    “We hope to establish and increase commodity exchange that will compete, if not better than what we have today in the stock exchange.

    “A committee has submitted a report on the Commodity Ecosystem; we are currently at the implementation stage.

    “We have partners and collaborators under financial inclusion. We have the Nigeria Deposit Insurance Commission (NDIC), National Pension Commission (PenCom), National Insurance Commission (NAICOM) etc.”

    The apex regulator of the capital market encouraged participants to embrace collective investment schemes like the Esusu and others that are regulated by SEC. Explaining that the Sukuk which is a non-interest finance scheme, is not a purely religious arrangement that excludes everyone else, urging participants to engage it.

    Head of Awareness Unit of Micro Pensions Department of PenCom, Mr. Emeka Onuora, said: “Micro pension is part of the Contributory Pension Scheme (CPS). It is a coverage extension of the CPS.

     

    “We have always placed emphasis on those that are working in government offices under the CPS; this time around, we want to include individuals working on their own. We want to educate them on the need to make provisions for their retirement regardless of whether they are working on their own.

     

    “For the Micro Pension Scheme (MPS), you have to be registered to get started just like you get registered under the CPS with Pension Fund Administrator (PFA).

     

    “When it comes to making payments (contributions), you can use your phones, ATM cards, USSD, banks, etc.

     

    “For the Micro Pension Scheme, you are not compelled on the amount you have to pay or the frequency of payment. You can pay in daily, weekly or monthly.

     

    “The MPS has incentives such that you have access to a certain percentage of your contributions for everyday expenses; this amounts to 40%. The other 60% is kept for your pension and is being invested by the Pension Fund Administrator so that when you retire, you are guaranteed your pension.”

  • SEC mulls regulatory framework on FinTech

    Securities and Exchange Commission (SEC) would soon roll out a regulatory framework for financial technology (FinTech) products in order to protect the general investing public.

    Acting Director-General, Securities and Exchange Commission (SEC), Ms Mary Uduk, said the apex capital market regulator would seek a balance between transition to a technology-driven capital market and protection of investors.

    Uduk  said the Commission is interested in investments that Nigerians are making especially with the advent of digitalisation.

    “The International Organisation 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,” Uduk said.

    She said 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.

    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.

    Uduk recalled that during the last Capital Market Committee meeting in Lagos, the Committee agreed to set up a committee to draw a Fintech adoption roadmap for the capital market.

    She noted the growing influence of Fintechs adding that the capital market needs to take advantage of Fintech offerings in moving forward.

  • FinTech: ‘SEC to regulate tech application in capital market’

    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.

    SEC’s Acting Director-General Ms. Mary Uduk made this known during the presentation of a Lecture by Ade Bajomo, Vice President, FinTech Association of Nigeria, titled “Market Impact of the FinTech Revolution” in Abuja.

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

    She said: “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.

    “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 said 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: only fit, proper persons ’ll be allowed in capital market

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has restated its determination to ensure that only fit and proper persons and associations are allowed to operate in the nation’s capital market.

    Acting Director-General, Securities and Exchange Commission (SEC), Ms Mary Uduk said SEC is open to suggestions and actions that would make the capital market vibrant, but the Commission would only be willing to collaborate with associations and persons that are fit and proper to operate in the market.

    Speaking when members of the Association of Stockbroking Houses of Nigeria (ASHON) met with SEC management in Abuja, Uduk said the Commission is dedicated to further develop and deepen the capital market.

    According to her, SEC is willing to collaborate with the association to lift the market and re-position it among leading capital markets that meet international standards and best practices.

    SEC noted that a well-functioning capital market was essential to Nigeria’s economic development, and to realise its full potential, the country must have a world class capital market that is strong, sustainable, effective, and plays a central role in economic development.

    Uduk commended members of the group on their efforts so far in deepening the market, especially for their support towards the financial literacy campaign of the SEC and assured them of the readiness of the SEC to continue to work with them.

    “It is good that we work together to take our capital market to the height we want it to attain. We are ready to engage with you to give us clarity on several issues relating to the market. We are open to discussions that will benefit the market, the market is the most important in all our engagements,” Uduk said.

    In his remarks, ASHON Chairman, Chief Patrick Ezeagu pledged the group’s commitment to the capital market growth, adding that whatever is done to make the market work is of concern to the association.

    “We have always worked with SEC and will continue to do so and accord you all the co-operation you require to succeed,” Ezeagu said.

    He said stockbroking houses will continue to collaborate in every way possible to bridge the gap in financial literacy.

    Meanwhile, in a move to further enlighten investors and the general public on the process and benefits of e-dividend, will today hold a town hall meeting with stakeholders and the general public in Port Harcourt.

    The meeting will provide the Commission the opportunity to highlight investment opportunities available in Nigerian capital market and how retail investors can benefit therein.

    The meeting will also provide the Commission opportunity to educate and enlighten the public on electronic dividend and interact with the general investing public.

     

     

     

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

    According to the Commission, investors should continue to approach their banks or registrars 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.

     

  • MTN yet to file application for IPO, says SEC

    NIGERIA’S apex capital market regulator, the Securities and Exchange Commission (SEC), yesterday confirmed that MTN Nigeria has not filed any application for consideration of the telco’s much-touted initial public offering (IPO), contrary to a media report.

    SEC stated that neither MTN Nigeria Limited nor any of its advisers or representatives has filed any application on the IPO with the commission.

    It is mandatory for any company seeking to float an offer to submit such offer to the review of SEC and obtain the final approval of the commission before rounding off other pre-offer processes.

    In a circular, SEC noted that a report in a newspaper (not The Nation) and other media outlets insinuating that the MTN IPO was set to go was “false, misleading and without merit”.

    According to the commission, MTN Nigeria Limited to the best of the commission’s knowledge is a private company limited by shares and as at now, neither MTN Nigeria Limited nor any of its advisers or representatives has filed any application with the SEC on the IPO.

    “Given that there is no application from MTN before the commission, there could not have been a request by MTN or any of its representatives or advisers requiring any form of regulatory review,” SEC stated.

    The commission noted that it welcomes filings aimed at deepening and broadening the capital market and stands ready to provide the necessary regulatory support.

    It added that if MTN finally files a formal and complete application, it would be treated with the usual diligence and urgency that is applicable to such filings.

    “Furthermore, we wish to remind all capital market operators of their duty not to furnish information, which is false, and misleading in any material particular as the commission would not hesitate to take necessary regulatory actions on any erring market operator,” SEC stated.

    SEC reiterated its commitment to its core mandate of investor protection and maintaining the integrity of the Nigerian capital market.

    MTN Nigeria had in 2016 appointed the advisory team and set out a roadmap towards listing on the Nigerian Stock Exchange (NSE) in 2017.

    The board of MTN Nigeria had announced the appointment of Stanbic IBTC Capital Limited and its affiliates, Standard Bank of South Africa Limited and Standard Advisory London Limited and Citigroup Global Markets Limited as the joint transaction advisors and joint global coordinators for the proposed listing of MTN Nigeria on the NSE. The telco, however, missed the 2017 target.

    MTN Nigeria has not confirmed the size of its IPO, but many sources have said the telco plans to raise between $400 million and $500 million through the IPO scheduled for the second half of this year.

    It should be recalled that as part of the conditions to settle its $3.4 billion fine by the Nigerian Communications Commission (NCC), MTN Nigeria had announced its intention to list its shares on the NSE as soon as commercially and legally possible.

     

     

  • SEC okays ASHON as trade group

    Red Star Express Board of Directors at the weekend announced that it has recommended payment of N236 million to shareholders of the company as cash dividend for the immediate past year. The company had distributed same amount in the previous year.

    Shareholders will receive a dividend per share of 40 kobo, implying a dividend yield of 6.7 per cent on the company’s closing share price of N6. Red Star Express’ share price rose by 5.0 kobo or 0.84 per cent to N6 at the weekend.

    Key extracts of the audited report and accounts of Red Star Express for the year ended March 31, 2018 showed decline in the bottom-line. Group turnover rose from N7.3 billion in 2017 to N8.41 billion in 2018. Profit before tax, however, declined from N653.2 million in 2017 to N610.59 million in 2018. After taxes, net profit dropped from N426.76 million to N347.56 million.

    Red Star Express had secured shareholders’ approval to transit to holding company and raise additional capital. The new capital raising could be raised through debt issue, equity issue or a combination of both equity and debt.

    The Group include three subsidiaries- Red Star Freight Limited, Red Star Logistics Limited and Red Star Support Services Limited. The group principally engages in courier services, mail management services, freight services, logistics, warehousing and general haulage.

    Its Chairman, Dr Mohammed Koguna, has said the company plans to change its operating structure from group to holding company to reflect its business expansion and other emerging opportunities.

    According to him, the change to holding company is necessitated by the various initiatives the company seeks to explore and the need to have a more structured accounting system.

    “These are part of the company’s expansion plans aimed at taking full advantage of business opportunities,” Koguna said.

    Koguna, who owns the largest equity in the company, said the group has identified some growth platforms that will become full subsidiaries in the years ahead.

    “We will continue to be innovative so as to ensure the steady growth of the company, which would bring about sustained progression in terms of returns on investments. Our watchword in the management of both our human and capital resources will be to focus on cost efficiency, and concentrate on opening new horizons that will ensure we remain the market leader in our industry,” Koguna said.

  • SEC assures foreign investors

    The Securities and Exchange Commission (SEC) 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 Acting 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.

  • SEC seeks financial inclusion for Nigerians

    The Securities and Exchange Commission (SEC) yesterday said it hopes to reach 80 per cent of the population by 2020 in its financial inclusion initiative.

    The organisation said there is need for Nigerians in rural areas to be effectively sensitised on the benefits of investing in the capital market.

    Its Acting Director-General, Ms. Mary Uduk, said this at a sensitisation campaign in Kwali Area Council, Abuja.

    Represented by the Acting Head of Department, Market Development Department at the commission, Mr. Frank Okafor, Ms. Uduk said the financial inclusion enlightenment campaign was to ensure that various products were made available to the excluded.

    She said: “Our target is to have 80 per cent citizens to be financially included by the year 2020 and having recorded huge success in Bwari, Kuje Area Councils and University of Abuja, it has become pertinent that we extend the programme to other communities hence our presence here today.