SEC urges investors to regularise shareholding accounts before Dec.31

The Security Exchange Commission (SEC), on Friday enjoined investors in the capital market to regularise their shareholding accounts before the Dec. 31 deadline.

Mrs Mary Uduk, the Ag. Director General of the Commission, gave the advice at the 1st Quarter Post Capital Market Committee (CMC) media briefing in Lagos.

She said the committee had made progress in resolving issues relating to share regularisation and multiple accounts, saying this was facilitated through engagement with the Central Bank of Nigeria (CBN).

On the issue of implementation of complaint management framework, Uduk said the Commission had completed work on the framework and waiting for the shareholders to review it and send back to the Commission.

“Engagement between the Commission and CBN on margin lending has since started. However, deliberations are still ongoing on the inclusion of bank shares in the margin list.

“The market-wide committee on identity management and account validation for transactions in the capital market is enjoined to fast track its activities.

“In furtherance of this initiative, the Commission is to engage the CBN to facilitate the validation process through the Nigeria Inter Bank Settlement System (NIBSS).

“The focus is to ensure that every investor duly regularises the share account because while E-dividend system is growing and reduces the rate of unclaimed dividend, the issue of multiple accounts is a challenge,” Uduk said.

She said for the regularisation, some investors in the Diaspora had been able to consolidate their investments and urged the local investors to do same.

Uduk added that SEC was planning activities to sensitise the Nigeria Governors’ Forum on commodity exchange and had also started engagement with the CBN to address the issue of ‘Margin Loan.’

According to her, the Commission will direct public companies to address shareholders on the use of annual report and the E-dividend system.

Also speaking, Mr Isyaku Tilde, Ag. Executive Commissioner (Operations), SEC, emphasised that multiple shares account needed to be regularised to enable payment of the accrued dividends.

Tilde said all accrued unclaimed dividends got automatic payment once regularised and urged investors to visit their banks and submit their forms.

He noted that one of the mandates of the Commission was to protect investors.

“Presently, if unclaimed dividend stays with the Registrar for 15 months and above, it will be returned to the company.

“The CMC is advocating the extension of the exercise to shares of unlisted public companies. This would enhance liquidity and ease market processes,” he said.