SEC Bullish on Market, Encourages E-Annual Reports Dispatch

Goddy Egene

The Director General of the Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo yesterday said that the nation’s capital market would continue to regain investors’ confidence and remain bullish.

Speaking at the 2017 Second Post Capital Market Committee (CMC) news conference in Lagos, Gwarzo said that the various economic policies of the federal government, the new foreign exchange management strategies of the Central Bank of Nigeria (CBN), as well as efforts being made by the Commission and CMC would help sustain the bullish trading so far witnessed in the market this year.

According to him, while the CBN forex window for import and exporters has encouraged the return of more investors to the market, many companies would also benefits from efforts to bring down interest rates and report improved financial results going forward.

“Besides, SEC and other market stakeholders have been introducing initiatives that are aimed at protecting investments in the market. The electronic dividends, the direct cash settlement among others are initiatives that would encourage more patronage in the market on the long run,” he said.

Gwarzo said the commission will soon embark on a robust enlightenment campaign that would make more investors understand the benefits of these initiatives so as they can embrace them.

Meanwhile, he said the commission is also working on a pilot scheme that would ensure electronic circulation of annual reports to shareholders in order to save costs.

Gwarzo said that quoted companies would save between N500 million and N1billion from printing and dispatch of hard copies of annual reports to the shareholders.

He stated that the CMC had reviewed the issue in line with economic realities and decided to introduce a pilot scheme for electronic distribution of annual reports to save cost and ensure enhanced dividend payment in the market.

Gwarzo, however, noted that given the low level of internet penetration among the shareholders, companies secretaries would still dispatch hard copies of annual reports during the pilot scheme.

According to the DG, a significant percentage of shareholders don’t get dispatched copies of annual reports before the annual general meetings.

“We have been doing something for the last 50 years which is not helping the companies or even investors. The market would review the pilot scheme in first quarter of 2018 and address identified loopholes before deciding on total stoppage of printing of annual reports,” he said.