SEC Extends Multiple Subscription Regularisation Deadline to Dec 2019
The Securities and Exchange Commission (SEC) has once more extended the forbearance deadline for investors to regularise their multiple accounts to December 31, 2019, as part of efforts to reduce volume of unclaimed dividends in the Nigerian capital market.
This was one of the decisions reached at the end of the third Capital Market Committee (CMC) meeting held in Lagos, Thursday.
SEC had announced December 31 2018, as deadline for regularisation of multiple accounts.
However, briefing newsmen yesterday on the outcome of the CMC meeting, Acting Director General of the SEC, Ms. Mary Uduk said the committee considered the issue and decided it is best to give investors more time to regularise their multiple accounts in order to derive the benefits from their investments.
“I am delighted to report that on the lingering issue of multiple subscriptions and forbearance for shareholders with multiple accounts, the CMC agreed that the forbearance window should be extended by another year from the December 31, 2018 deadline previously communicated. We expect investors to take advantage of this opportunity to claim their unclaimed dividends and bonuses,” she said.
Uduk also announced a two-pronged approach to ad- dressing the intractable challenges associated with transmission of shares related to the estate of deceased investors.
“The first step would involve engagement with and enlightenment of the Probate Registry with a view to providing solutions to the cumbersome process of transmitting shares. Secondly, Rules would be developed around the time frame for transmission shares and the fee structure,” she said.
Also worried by issues of identity theft in the capital market, the SEC boss said the commission would work with other major stakeholders in setting up a committee that will look into and proffer solutions to problems around identity management in the Nigerian capital market.
Similarly, Uduk said as part of efforts to eliminate underhand dealings, the commission is set to take enforcement actions against any persons engaged in trading in the shares of public unlisted companies outside a recognised securities exchange as provided by the rules. On the need to grow the market for trading in securities on unlisted public companies, she said the Commission is making concerted efforts in collaboration with the Corporate Affairs Commission (CAC) and other stakeholders to assist public companies that are yet to register their securities to do so without much difficulty.