The Nation Newspaper

Tag: SEC

  • SEC takes financial literacy to grassroots

    Securities and Exchange Commission (SEC) has expressed its readiness to collaborate with various grassroots groups in its financial literacy campaign in a bid to ensure that Nigerians in the rural areas are effectively sensitised on the benefits of investing in the capital market.

    Acting Director General, Securities and Exchange Commission (SEC), Ms Mary Uduk, stated this during a meeting with executive members of National Youths Initiative for Peace and Governance (NYIPG) at the Commission’s head office in Abuja.

    Uduk who was represented by Acting Executive Commissioner, Corporate Services of SEC, Mr. Henry Rowlands, commended the organisation on the various good governance and entrepreneurship sensitisation campaigns they have carried out.

    She expressed the desire of the commission to tap into NYIPG’s existing structures to also sensitise the grassroots on financial literacy.

    “We are delighted at the various sensitisations you have carried out to enlighten the people in your region on the need to engage in meaningful vocations. When someone is fully engaged, he will work for the peace of the country as he would not want any activity that would destroy his business. The SEC as part of its market development mandate would like to partner with you to educate the people on the best ways to invest the money they are making from their businesses,” Uduk said.

    Vice President, National Youths Initiative for Peace and Governance (NYIPG), Abdulmalik Alfo, commended the SEC on its various initiatives as contained in the 10 year capital market master plan and pledged the readiness of his association to collaborate with the Commission in any area necessary.

     

  • SEC okays FMDQ’s clearing house

    Securities and Exchange Commission (SEC) has registered FMDQ Clear Limited, a central clearing house promoted by the FMDQ OTC Securities Exchange.

    In a statement, FMDQ stated that the clearing house will deliver highly efficient post-trade services across Nigeria’s fixed income and derivatives markets, addressing some of the key drivers for the development of the markets.

    The clearing house will ensure risk mitigation, capital efficiency, price transparency, safety, stability, confidence and inclusiveness in the marketplace.

    According to FMDQ, FMDQ Clear has commenced initiatives to ensure that its risk management activities underpin its effectiveness, reliability and long-term sustainability, as it strives to resolve key clearing and settlement issues.

    FMDQ Clear has also formally partnered with Frontclear, which provides third-party settlement guarantee funds (SGFs), to further strengthen the clearing house risk waterfall framework, with a third-party settlement guarantee arrangement that improves on settlement finality, a first of such infrastructure in Africa.

    “The establishment of this clearing infrastructure, FMDQ Clear, will greatly contribute to making the Nigerian inter-bank market globally competitive, operationally excellent, liquid and diverse, in line with FMDQ’s GOLD Agenda for the transformation of the Nigerian financial markets, as participating clearing and dealing members will have expanded access and in turn, be better able to serve the needs of their client base and the real economy,” FMDQ stated.

     

  • SEC cautions patrons of Ponzi schemes

    •Seeks incentives for quoted companies

    Securities and Exchange Commission (SEC) has warned the investing public against dealing with unregistered schemes and illegal operators and promoters of ponzi schemes.

    In a circular, the Commission advised the public to exercise utmost caution and conduct adequate due diligence on the status of operators and investment schemes to ensure they are duly registered before entering into any transaction with such operator. The list of registered operators and investment schemes are on the website of the Commission.

    According to the Commission, Section 38(1) of the Investments and Securities Act, 2007 requires any person who intends to operate as a professional in the capital market or carry on securities business to be registered by the Commission before engaging in such activities.

    “It is therefore illegal to carry on any kind of capital market business without registration or to patronize such person. In view of the above, the general public is hereby warned that any person dealing with any such persons in any capital market or investment related business is doing so at his or her own risk,” SEC stated.

    The Commission noted that while it is under a duty to protect investors, such duty does not include recovering funds for investors who against reason and public notices invest in products promoted by unregistered and unregulated entities.

    SEC reiterated its commitment to work with law enforcement agencies to bring promoters of such illegal schemes to book.

    Meanwhile, the Commission has advocated for some fiscal incentives for quoted companies on the Nigeria Stock Exchange (NSE) in order to reduce their costs and encourage more companies to list shares on the stock market.

    SEC Acting Director-General, Ms. Mary Uduk, noted that apart from reduction of costs, fiscal incentives will translate to huge investment benefits to shareholders and further position quoted companies to contribute more to national development through improved capacities and job creation.

    She added that creating some form of fiscal incentives for listed entities will add further mileage to ongoing efforts to improve corporate governance in the country.

    “Our case for fiscal incentives for listed companies on the NSE is actually based on experience. What we are saying is that Nigerian companies doing the same business these foreign companies are doing if they are listed should be encouraged in terms of public procurement or whatever government is doing.

    We don’t want to keep taking from them because they incur a lot of cost and you cannot reduce the cost more than a limited amount of percentage. The best is to begin to give them some incentives and with that you have more companies coming to the market, you have more jobs and then people will have dividends of investing,” Uduk said.

     

  • SEC warns investors over banned firms

    Securities and Exchange Commission (SEC) has warned investors to shun a proposed restructuring plan by Partnership Investment Company and its subsidiaries.

    In a circular, SEC stated that its attention had been drawn to an electronic message being circulated to investors on behalf of Partnership Investment Company Plc and its subsidiaries, purporting to be undergoing restructuring.

    SEC noted that following the hearing of the complaints against the Partnership Investment Company and its subsidiaries in June 2017, the Administrative Proceedings Committee (APC) of the Commission had cancelled the registration of the Partnership Investment Limited and Partnership Securities Limited and banned the principal officers and executives of the companies from participating in the capital market.

    “In view of the above, the general public is hereby warned to be wary of the proposal and hereby direct Partnership Investment Company Plc and its subsidiaries to submit their repayment plan officially to the Commission for the protection of affected investors,” SEC stated.

  • SEC warns investors over banned investment firm

    Securities and Exchange Commission (SEC) has warned investors to shun a proposed restructuring plan by Partnership Investment Company and its subsidiaries.

    In a circular, SEC stated that its attention had been drawn to an electronic message being circulated to investors on behalf of Partnership Investment Company Plc and its subsidiaries, purporting to be undergoing restructuring.

    The electronic message titled “Re: Partnership Investment Company Plc Restructuring and Re-organization: A Plan to Pay All Creditors/Customers”, indicates a proposal to investors who lost monies to Partnership Investment Company Plc and its subsidiaries, especially Partnership Securities Limited to sign up to participate in a repayment plan with two options.

    The two options included three years’ repayment plan, which includes taking a cash payment or accepting equity in a company to be registered and listed on the Nigerian Stock Exchange (NSE) while the second option involves investors accepting payment of only 50 per cent of their investment payable within 12 months.

    SEC noted that following the hearing of the complaints against the Partnership Investment Company and its subsidiaries in June 2017, the Administrative Proceedings Committee (APC) of the Commission had cancelled the registration of the Partnership Investment Limited and Partnership Securities Limited and banned the principal officers and executives of the companies from participating in the capital market.

    “Please be further informed that the conduct of the Partnership Investment Company and its subsidiaries on restructuring is very suspicious and appears to be an attempt to scuttle the directives of the APC. In view of the above, the general public is hereby warned to be wary of the proposal and hereby direct Partnership Investment Company Plc and its subsidiaries to submit their repayment plan officially to the Commission for the protection of affected investors,” SEC stated.

     

     

  • SEC warns investors over banned investment firm

    Securities and Exchange Commission (SEC) has warned investors to shun a proposed restructuring plan by Partnership Investment Company and its subsidiaries.

    In a circular yesterday, SEC stated that its attention had been drawn to an electronic message being circulated to investors on behalf of Partnership Investment Company Plc and its subsidiaries, purporting to be undergoing restructuring.

    The electronic message titled “Re: Partnership Investment Company Plc Restructuring and Re-organization: A Plan to Pay All Creditors/Customers”, indicates a proposal to investors who lost monies to Partnership Investment Company Plc and its subsidiaries, especially Partnership Securities Limited to sign up to participate in a repayment plan with two options.

    The two options included three years’ repayment plan, which includes taking a cash payment or accepting equity in a company to be registered and listed on the Nigerian Stock Exchange (NSE) while the second option involves investors accepting payment of only 50 per cent of their investment payable within 12 months.

    SEC noted that following the hearing of the complaints against the Partnership Investment Company and its subsidiaries in June 2017, the Administrative Proceedings Committee (APC) of the Commission had cancelled the registration of the Partnership Investment Limited and Partnership Securities Limited and banned the principal officers and executives of the companies from participating in the capital market.

    “Please be further informed that the conduct of the Partnership Investment Company and its subsidiaries on restructuring is very suspicious and appears to be an attempt to scuttle the directives of the APC. In view of the above, the general public is hereby warned to be wary of the proposal and hereby direct Partnership Investment Company Plc and its subsidiaries to submit their repayment plan officially to the Commission for the protection of affected investors,” SEC stated.

  • SEC begins talks with MTN Group on $500m public offer

    The Securities and Exchange Commission (SEC) yesterday confirmed that MTN Group had commenced discussions with it on its proposed $500 million Initial Public Offering (IPO).

    A senior management official of SEC who pleaded anonymity said MTN had commenced discussion with the commission on the IPO.

    Nigeria is the largest of the telco’s 22 markets across Africa and the Middle East.

    The source said although talks were ongoing, the telco was yet to formally file its application for the IPO.

    According to the News Agency of Nigeria (NAN), the source reiterated SEC’s commitment to investors’ protection, and that their interest would be protected in the ongoing discussion, adding that SEC would remain committed to the development of the nation’s capital market and listing of more multinationals.

    Another source at the Nigerian Stock Exchange (NSE), who declined to be mentioned, also said the NSE had not yet received an official filing from the company.

    “We are progressing very well with the Nigerian listing and if market conditions are appropriate, we will conclude that by the end of the year,” MTN Group CEO, Rob Shuter, said in an interview in Lagos. He declined to provide more details on the process.

    There were reports recently that MTN Group Ltd. was perfecting plans to raise about $500 million from the sale of shares in its Nigerian business in the first half of this year.

    Standard Bank Group Ltd. and Citigroup Inc. had been advising MTN on the disposal of as much as 30 per cent of its Nigerian unit on the NSE.

    MTN had agreed to list the Nigerian unit as part of the June 2016 agreement it entered into with the Nigerian Communications Commission (NCC) to resolve the humongous $5.2 billion (later reduced to $1billion) fine for missing a deadline to disconnect unregistered subscribers amid a security crackdown.

  • SEC, stakeholders meet tomorrow

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

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

    Thursday’s CMC meeting is the first since the suspension of Mr. Mounir Gwarzo as SEC Director-General (DG) and it comes on the heels of last week’s sack of the commission’s acting D-G, Dr Abdul Zubair and Mhis replacement by Ms Mary Uduk, who is expected to preside over the meeting.

    At the meeting, the CMC will consider reports from its technical committees and review the outlook for the market in the light of emerging developments. Top on the agenda would be the capital market master plan implementation and other Capital Market Initiatives. The 10-year master plan for the 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 SEC DG, consists of chief executives of registered capital market operators, including stockbrokers, solicitors, custodians, fund managers, issuing houses, rating agencies, registrars, reporting accountants, trustees and consultants, among others.

    Others are 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 has 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. It meets quarterly to deliberate on various issues affecting the market and other policy matters.

     

  • SEC: lifting Oando’s suspension in order

    The Securities and Exchange Commission (SEC) yesterday said there was no controversy over the lifting of the suspension on trading on Oando Plc’s shares.

    Its acting Director-General, Dr Abdul Zubair, explained to reporters in Abuja why it directed the Nigerian Stock Exchange (NSE) to lift the technical suspension on the shares.

    He said before the decision was reached, the Oando management and  the umbrella body of all shareholders’ union in the company visited SEC and made written submissions for the lifting of the suspension.

    The lifting of the suspension, he said, was also sequel to the withdrawal of all litigations by the company and shareholders challenging the suspension.

    According to him, the suspension of shares from trading on the floor of the NSE was usually for a short period, but that of Oando extended beyond the normal period owing to litigations instituted by the shareholders and Oando, Zubair said.

    “As a result of the court cases, the commission as a law abiding agency of government was constrained to continue with the forensic audit or lift the suspension.

    “However with the withdrawal of the suit in February, the forensic audit being carried out by Deloitte has resumed while the technical suspension has been lifted,” he said.

    Zubair reiterated that an independent forensic audit was still being carried out by Deliotte, an auditing firm, adding that if Oando was found to have broken any rules,  it would be sanctioned.

    The SEC boss revealed that the commission would soon receive the preliminary findings on Oando Plc from Deloitte.

    He, however, said since it was an independent audit, there was no time limit to the duration of the audit, thus its conclusion would depend on the situation the audit firm meets.

    Zubair said contrary to speculations,  there was no disagreement between SEC and the NSE in the process of lifting the suspension.

    The commission, he said, was aware that its letter directing the “immediate” lifting of suspension was subject to the 48 hours rules of the capital market.

    Speaking on reports that the trading on the shares of Oando resumed on Wednesday only to be halted later, leading to confusion among capital market watchers, Zubair said SEC was awaiting reports from the NSE.

    He reiterated that the commission had nothing to do with the halt on Wednesday as it had already given the NSE the directive to lift the 176-day technical suspension since April 9.

    The Oando shares, which officially resumed trading yesterday rose by 10 per cent to close at N6.60 per share.

     

  • SEC mulls stiffer sanction for fund diversion

    Nigeria’s apex capital market regulator-Securities and Exchange Commission (SEC) yesterday indicated that it has started the process of amending its rules and regulations to impose additional monetary sanctions on companies and governments that divert or misapply funds raised from the capital market.

    Under the proposed amendment, any company or government that diverts or misapplies funds raised from the capital market will pay additional penalty equivalent to two per cent above the subsisting monetary policy rate (MPR). The MPR is currently at 14 per cent, implying a proposed penalty of 16 per cent at the current rate.

    In a circular issued yesterday, SEC noted that it had received reports on instances of misapplication of issue proceeds, referring to the practice by some issuers to use funds raised for a specific purpose for another purpose without recourse to the Commission for a variation of the use of the net proceeds.

    “To curtail such diversion and misapplication of issue proceeds, it became necessary to propose a stiffer penalty,” SEC stated.

    Also, the Commission is considering amending its rules on publication of interim financial statement to provide exception to companies listed on the Alternative Securities Market (ASeM) of the Nigerian Stock Exchange (NSE) from mandatory publication of their reports in a newspaper.

    Under the existing rules, all public companies are required to publish their “signed” quarterly balance sheet, income statement and cash flow statements in at least one national daily newspaper. However, the accounting policies, notes and other relevant information shall be posted on the company’s website which address shall be disclosed in the newspaper publication.

    The amendment will exclude companies on ASeM from the requirement to publish in a national daily. The amendment provides that “public companies listed on the AseM may publish their “signed” quarterly balance sheet, income statement and cash flow statements, accounting policies, notes and other relevant information on the company’s website only”.

    According to SEC, the proposed rule will reduce the cost of publication for small companies listed on the AseM.

    The Commission also plans to amend the rule on shelf registration. “A shelf Prospectus shall be effective for a period of three years from the date of its issue and shall be subject to renewal as may be approved by the Commission. Provided, that the Shelf Prospectus of supranational agencies shall be effective for an indefinite period until determined by the Commission,” the proposed amendment stated.

    Also, in the case of a shelf prospectus which is effective for an indefinite period, information in the shelf prospectus shall be updated prior to the issuance of any tranche or series, the shelf prospectus shall be updated by the filing of an addendum to the shelf prospectus with the Commission while the addendum may include an information statement and any other relevant information and shall be incorporated by reference in any tranche or series to be issued.

    SEC explained that the shelf life of a shelf programme by Supranational Agencies was made effective and valid indefinitely by a 2013 Rule amendment, to allow supranational agencies unfettered and quick access to the capital market in view of the fact that their status made for little change in their material information.

    However a 2015 amendment which sought to extend the shelf life of the shelf programmes of other issuers from two years to three years –in line with international best practice, inadvertently substituted the word ‘Supranational Agencies’ with ‘Sub-nationals’.

    “It is necessary to urgently correct this error to avoid perpetuating an irregularity since the regular changes in the material information of sub-nationals should make it imperative that their shelf programme have a fixed life as material information of Sub-nationals quickly becomes stale or of no effect,” SEC stated.