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Tag: SEC

  • SEC approves IFC’s N100b bond

    SEC approves IFC’s N100b bond

    The Securities and Exchange has approved the plan by the International Finance Corporation (IFC) to raise local denominated bonds worth N100 billion.

    SEC’s Director, Securities and Investment Services, Ms. Mary Uduk, announced this on Thursday in Abuja on the sidelines of SEC’s Journalists’ Academy 2012.

    According to her, the bond is for private sector development and IFC had started the process of `book building’ to determine the tenor and issuing rate for the paper.

    The News Agency of Nigeria reports that book building is the process of determining tenor, rates and absorbing capacity of the market.

    “The proceeds would be used to support private sector activities, onward lending to local banks and promote capital market development,’’ Uduk said.

    NAN reports that the Nigerian bond market has continued to attract foreign investors since the inclusion of its bond in the JP Morgan Index in October.

     

  • Annual report: Firms opt for e-report, notice

    Annual report: Firms opt for e-report, notice

    Several companies might send their 2012 annual reports and accounts in electronic copies to shareholders as companies seek to cut costs of shareholders’ relations.

    Quoted companies and Securities and Exchange Commission (SEC) are seeking regulatory changes to pave way for unfettered take-off of electronic-reporting scheme.

    Companies had used their last annual general meetings to sensitize shareholders and seek necessary consents, prior to take-off of the e-reporting initiative.

    Shareholders of companies under the UAC of Nigeria (UACN) Group including UAC of Nigeria, CAP Plc, and UACN Property Development Company (UPDC) had at the yearly general meetings of the companies considered amendments to the articles of association of the companies to enable the companies send annual reports and accounts and other notices through compact disc, electronic mail or web publication in addition to existing option of hard printed copy.

    Cadbury Nigeria had earlier notified that it would now distribute its audited reports and accounts and other related documents in soft electronic format rather than in paper form.

    The company said the decision to use compact disc to distribute information to shareholders was part of its desire to ensure the sustainability of environment and align with international best practice.

    According to the company, to ensure fairness and equity, shareholders will be given the option of requesting for a paper copy of these documents by exception, if they determine that they do not want to receive same in a CD format.

    Nestle Nigeria has also said it was introducing electronic delivery of annual reports and other corporate documents to ensure quick and effective access to information.

    At its last general meeting, Nestle Nigeria provided shareholders with an electronic mandate form, which would legally allow the company to send soft edition of its reports online through email address or compact disc. Nestle Nigeria’s shareholders would also be able to download all the reports from web address to be provided by the company.

    The Securities and Exchange Commission (SEC) has requested the National Assembly to amend the Companies and Allied Matters Act (CAMA) 1990 to allow electronic shares issuance, dematerialization, electronic bonus and dividends among other initiatives.

    SEC has sought for amendments to section 117 of CAMA, which gives companies the general powers to issue shares and section 125, which makes provisions relating to allotment of shares and issuance of share certificates to allow electronic issuance and allotment.

    According to SEC, these amendments would allow companies to electronically issue shares through CSCS accounts, which would enhance the dematerialisation of paper share certificates.

    SEC called for general review of sections 114 to 165 of CAMA.

    The apex capital market regulator also wanted the legislators to amend section 220 of CAMA, which provides for service either by giving the member personally or sending it to him by post or to his registered address to provide for service of notices electronically in the first instance where a member has provided an email address as a means of communication and the definition of registered address should include an electronic address.

    “Sections 83 and 84 should recognise the use of electronic registers as a mandatory backup and provide for a location of that register securely on independent servers or disks not in the premises of the company or the registrar,” SEC stated.

    SEC also called for amendment of section 379 on dividends to allow for electronic payment of dividends and subsequently full automation of dividend payment after expiration of a grace period.

  • I’m ready to die for SEC– Oteh

    I’m ready to die for SEC– Oteh

    Ms. Arunma Oteh, Director General, Security and Exchange Commission, (SEC) who has been in the news over her leadership style was an award recipient in Anambra State recently. In this interview with Odogwu Emeka Odogwu, she speaks on development at the stock market and other sundry issues

     

    Your award as the most historic woman of the year 2012 is coming at a time when you are receiving lots of attacks

    I have received a lot of attack recently, but when I got the letter that the Anambra State Council of Nigeria Union of Journalists wanted to honour me as the most historic woman of the year, I almost shed tears. This is because despite what people are doing to bring you down, there are people somewhere who are appreciative of the good work we do.

    I am not afraid to say that I will always do the right thing as the Director-General of the Security and Exchange Commission. I am not moved by what people are doing trying to pull me down, so long as I know that I am doing the right thing. In the past, we had a capital market where people wear suits and sit down to steal money belonging to peasants, but when I came in I told myself that all these have got to stop. We must sanitise our capital market and build a trust that will let the poor man put his savings in it and be assured that it will not be stolen by people. What I am doing at the SEC, I am ready to die for. I’m not afraid to die so long as I am doing the right thing, and I’m very emboldened by the fact that people are watching, no matter the level of conspiracy against one, people are seeing your efforts and at the right time, one will be rewarded for every good work.

    How best could you describe events happening at the SEC?

    A lot is happening and we are trying to grow people’s investment, not by our words but by our actions, and today we have a market that is a world class market. That is why today our equities market, on daily basis, is flocked by values from international investors, which make up 80 percent.

    We Nigerians must enjoy the fruit of our hard work, if market prices are low today, and we have some money to save, we should try and put that money in the market so that it will grow your finances and you will have more money.

    Are there differences between the capital market you met and the capital market we have today?

    We always say at the SEC that, let us learn from the horrible things that happened in the past; our people suffered in the past because there was a lot of misrepresentation.

    Even up to 2010 it was still happening. People were told that their money will just double, and many of our people are crying because they sold their houses, they took their life savings and put them there. That is not what we are saying today. We are saying if you want to invest, you must ask questions. It is not enough for us to just tell the people that once you put your money, it will double. Ask questions, if you are told it is Lever Brothers or Nestle, you will know they have a distribution network everywhere and you will make enquiries to know about the market price.

    And you must go to meet financial experts and ask them questions before you invest. It is your right to ask questions, but please don’t wait for people to come from other countries and invest today and when you are ready to invest, it would be that prices have gone to the top. Last year when we went to Rivers State, the deputy governor there told us a story. He said his father told him that if you have N10,000 and you cannot save, when you earn N100million you will still not be able to save.

    What that means is that you do not have to wait until you have all the money before you begin to save money.

    How much have you done to spread the gospel of savings to Nigerians?

    Here at SEC, we value journalists a lot. I cannot talk enough about the importance of saving and investing, but those of you who write, who present programmes on TV and on radio probably do more in sending the message about saving and investing, about borrowing long term, listing your companies on the Nigeria Stock market.

    For us it is very important that we partner with journalists. One of the new initiatives we have for journalists is that we will have a Journalists Academy this year.

    This is because we feel that the more that you are familiar with the Nigerian capital market, the more that you can report back, so when we publicise about the Journalists Academy through the Anambra Council, we encourage journalists in Anambra to apply in your numbers. I think it is on 10th of December that we are going to have the Journalists Academy, but most importantly, next week, we will be publishing a new initiative which we call the SEC award for Journalists, it is an essay competition on the Nigerian capital market, and I encourage you to try and participate in this essay in your numbers.

    Saving and investing is very critical to building a nation, and no nation can develop without a strong capital market, if you want medium to long-term money for businesses, it comes from the capital market. One, it creates wealth and helps you to train up your children, so that you can retire and still live well. Everything that is negative in the economy affects the capital market because capital market is about the state of the economy.

    What effect do you think that the flood this year will have on the economy?

    I feel that Nigeria as led by President Goodluck Ebele Jonathan, a number of very senior private and public sector officials who have been constituted to scout for money to help these people, will do a good work and help save whatever negative impact it may have on the economy. We have Nigerians who have lost their homes and means of livelihood because of the flood, but I know that efforts are in place to see how they can be rehabilitated. This also has to do with agriculture in the country as most farmlands have been submerged and we are hopeful that the federal government will support agriculture. As you know, the federal government is very supportive of agriculture, as agriculture provides 42 percent of our GDP and also 70 percent of employment and, therefore, when something like flood happens, it is important that urgent steps be taken.

    Most companies especially in the South East do not get quoted on the stock market, what is the reason for this?

    Traditionally, Igbos are known for investing in their children, in real estate and in growing their businesses. I think there are areas where we can learn and do better. We must know that if we must only control our businesses, we will not grow as fast as we hope. We have a town like Nnewi that has some of the greatest businesses in Nigeria, and some of those businesses need to be listed on the Nigerian Stock Exchange, so that they can be like Honeywell, Dangote and the rest. We need to encourage our businessmen to move from the culture of controlling their businesses themselves and let others buy into them, so that they can grow. But Igbo people are known for enterprise, but we need to step our games up.

  • Oteh to investors: put your money in healthy banks

    Oteh to investors: put your money in healthy banks

    The Director-General, Securities  and  Exchange Commission (SEC), Ms Aruma Oteh, has warned those interested in investing in bank stocks to put their money in healthy banks.

    Speaking at the Learning Series of SEC yesterday in Abuja, Ms Oteh said it was necessary for investors to put their money in healthy banks, as the SEC has already taken “a decision to protect the banking sector and by extension, the country’s economy.”

    She explained that the capital market burst was because “people did not ask enough questions, that’s why some companies’ CEOs mismanaged their money.”

    Ms.Oteh cautioned that investors should exercise discipline and make sure they manage and invest their funds wisely, adding that “any stakeholder  who does nothing until a company folds up is not a dilligient investor.”

    She said annual general meetings are very important and should not be ignored by investors as they offer platforms for investors to be acquainted with development in their companies.

    She said the Commission has set up another division under the collective investment services departments that focuses on registering venture capitalists.

    She said over the next few years, SEC would focus on venture capitalists because it recognises its importance in  helping entrepreneurs to put their business ideas into reality, adding that  SEC is hoping to scale up the country in terms of financial planning.

    She said the Commission is working closely with SMIDAN, and has also  made efforts to operationalise the National Investment Protection Fund. SEC has ”worked closely with the Nigerian Stock Exchange to revamp the fund which has been dormant until now,” she stated.

    Ms. Oteh said 142 firms out of the 214 listed, have complied with the corporate governance code of the Commission, adding that SEC is not just interested in listing requirements, but also pro listing them.

    Oteh said SEC has been very clear on the issue of integrity in building a world class market in spite of what she called “attacks on SEC” and on her person.

  • Court permits Hembe’s counsel to serve court processes

    Court permits Hembe’s counsel to serve court processes

    An Abuja High court on Monday granted leave to the counsel to Herman Hembe, Mr. Jubril Okutepa (SAN), for the extension of time within which to file and serve the Economic and Financial Crimes Commission with court processes.

    At the resumed hearing of the case before Justice Abubakar Umar, Okutepa apologised to the court for his inability to file the final written address in the no case submission in the trial of Hembe.

    “It is not in my character to file or serve any court papers late. I travelled and returned around 4 a.m. I am pleading with my Lord to grant this leave so that I can duly serve the second accused and EFCC counsel,’’ he said.

    The News Agency of Nigeria reports that EFCC arraigned Hembe, former Chairman, House Committee on Capital Market and Other Institutions, and his deputy, Emeka Azubuogu, for alleged diversion of funds.

    The EFCC said that the duo dishonestly converted to personal use, the sum of 4,095 dollars (about N600,000) given to them by the Securities and Exchange Commission as travelling allowance to the Dominican Republic to attend a conference in October 2011.

    They are facing a two-count charge of misappropriation and conversion of public funds following an allegation by the Director-General of SEC, Ms. Arunma Oteh.

    The allegation led to their suspension from the House.

    The anti-graft agency said the offence contravened Section 308 of the Penal Code Act, Laws of the Federation of Nigeria, 2004 and if found guilty, they could serve a jail term of not less than seven years.

    In granting the leave to Okutepa, Umar also ordered the counsel to Azubuogu (second accused), Ms Linda Chuba-Ikpeazu, to file and duly serve the EFCC with their court process.

    Umar then adjourned to November 26 for the adoption of written addresses on a no-case-submission filed by Hembe and Azubogu.

    Earlier, the lawmakers declined to enter the dock.

    Counsel to the EFCC, Mr. Ojuefu Obe, had, while announcing his appearance, drawn the judge’s attention to the fact that the two accused were standing outside the dock and not inside, as they should.

    But the judge, overruled him and ordered him not to “over sensationalise’’ issues.

     

  • SEC crisis: Staff union gives Oteh ultimatum

    SEC crisis: Staff union gives Oteh ultimatum

    The face-off between the staff and management of the Securities and Exchange Commission (SEC) further deteriorated yesterday in Abuja as the staff of the commission protested the redeployment of a contract staff to head the department of internal control, accusing the director general, Ms Arunma Oteh of highhandedness and tyranny.

    The staff of SEC accused the management of the Commission of insincerity in the way it redeployed staff of the commission early this month and sought to know the reason for the deployment of security operatives to the commission.

    The workers staged the protest within the premises of the commission yesterday, chanting “Oteh must go!!!” with some of their placards reading “no to sole administrator-ship,” and “no to tyranny and highhandedness.” The protesting workers gave the director General of the commission Ms Arunma Oteh a two weeks ultimatum to address their demands or face their wrath.

    In a letter to management of SEC, the staff union had stated that “Mr Omotayo who is one of the unregularized staff who once served as a technical adviser to the DG was redeployed to head the Internal Control Department. This in our opinion creates a morale issue as Mr Omotayo by virtue of his former position would not constitute a sufficient check to executive or administrative excesses. His redeployment should therefore be checked.”

    The workers letter noted that “it is on record that the Board extract of 56th Board meeting directed that if by 31st July, 2012 the contract staff of the commission was not regularized, their appointment should be terminated. This directive has not been complied with, rather a counter directive was given by the DG to the finance and account department to pay up their remuneration up to August 2012 without any directive suppressing the earlier directive of the board.”

    Addressing journalists, the chairman of the union, Mr. Muhammed Salihu said that contract staff had been deployed by the DG to head the Internal Audit Department and SEC Training School, among others.

    “We have 21 contract staff; all of them placed in certain positions that are unbearable and against public service policy. It is unheard of that you make such a person a senior manager. You have somebody who graduated in 1994 and you make him a deputy director, we have 24 of them,” Salihu said.

    He said the union had written to Oteh to have a meeting with her adding that the DG issued a query instead of calling for a meeting.

    Salihu added that the union would give the management two weeks to work things out to ensure peace and harmony in the commission.

    He lamented that it was unfortunate that the DG had decided to adopt sole administration pattern to administer the commission.

    Salihu urged government to intervene in the situation to help develop the capital market in the country.’

  • SEC, staff row over promotion, postings

    The  relative calm at the Abuja headquarters of Securities and Exchange Commission (SEC) was yesterday ruffled following the deployment of armed policemen around its premises.
    The Nation learnt that the deployment of the securitymen was aimed at forestalling  “any untoward action by the union to register its displeasures against the decision of the management of SEC on promotion and internal redeployments.”
    As early as 7.30 am, a detachment of policemen took strategic positions within the SEC, even though there was no roudiness when The Nation visited.
    It was gathered that SEC’s Director-General, Ms. Arunma Oteh, in an apparent attempt to deepen the oversight and regulatory functions of the SEC on the capital market, last week approved internal re-deployment of staff who have stayed in a position for five years or more.
    The redeployment exercise, it was learnt, was to afford the affected staff the opportunity to have broad knowledge of the workings of the capital SEC ways and means to effectively regulate the market, but the exercise was viewed in a different light by some union members who regarded it as an attempt to witch-hunt perceived ‘anti- Oteh staff.’
    Another grouse against Ms. Oteh, was her stance on staff promotion, as it was learnt that a list of all outstanding promotions had been approved by the immediate past SEC board chaired by Senator Udo- Udoma.
    Instead of endorsing the promotion as approved by the immediate SEC board,  Ms. Oteh, it is alleged, insisted that any such promotion would be earned through  a promotion examination. That decision, it is said, has pitched her against the union.
    A staff who spoke on condition that her identity would be veiled, said examination has never been the basis for staff promotion at SEC, adding that the last management concluded everything in respect to promotions and approved that all outstanding promotions should be effected.
    She alleged that Ms. Oteh on her reinstatement, vowed that promotions would be tied to examination, a situation, she stated, is responsible for the current tension at SEC.
    SEC under Ms. Oteh, has been having a running battle with the staff, who resisted her reinstatement following  her temporary suspension over  an alleged fraud on SEC’s  ”Project 50.’