SEC Suspends Deadline For Multiple Accounts Regularisation

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The Securities and Exchange Commission (SEC) on Friday November 22, 2019, said it has suspended the regularisation deadline put in place for shareholders that opened accounts for the purchase of shares with different names. This was parts of the outcome of the third quarter Capital Market Committee (CMC) that was held in Lagos on Thursday November 21, 2019.

Although, the apex regulator in the capital market, said they are still reviewing the situation as there will not be any time line for it, stressing that it will be open ended for now. Briefing financial journalist, the Acting Director General Ms Mary Uduk said this will enable other shareholders that are having challenges with their details to come up and regularize their holdings, noting that, the commission have discovered that some shareholders are avoiding it due to the fear of EFCC.

According to her, “the Multiple Subscription Committee presented the status of its ongoing engagement with the Central Bank of Nigeria (CBN) and Committee of Heads of Banking Operation to display multiple accounts regularization banners in the banking halls all over the country. The Committee also reported that CMOs have commenced the filing of report on regularized accounts with the Commission, on a quarterly basis. Given the relevance of this exercise and the need to create more awareness, the Committee requested for an extension of the deadline of multiple accounts regularization”.

Uduk explained that other resolutions that was reached at the meeting includes, “Registrars are to discontinue the practice of requesting for confirmation of bank signature during the E-DMMS process. CMOs are to display awareness campaign banners of e-DMMS at their offices and Venue of Annual General Meetings (AGM). Capital market operators should also work with the Commission to share awareness information on their social media platforms”

She said the commission also reviewed the request from the Association of Stockbroking Houses of Nigeria (ASHON) for extension of time for compliance on the transfer of complete investor data among operators such as Brokers, Registrars and CSCS. Adding that upon completion, the position of the Commission will be communicated to the relevant parties.

The acting director general pointed out that the commission is to engage the National Pension Commission (PENCOM) on modalities which would permit Pension Fund Administrators (PFAs) to participate in Securities Lending. And to develop rules and regulations on warehouse receipts within the current legal framework.

Market stakeholders that attended the meeting includes Chairman of SEC board Mr Olufemi Lijadu, among others that had discussions geared towards moving Nigerian market and the economy forward.

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