Multiple Subscriptions: SEC Extends Forbearance for One Year
The lingering issue of multiple subscriptions and forbearance for shareholders with multiple accounts has received succor as the Securities and Exchange Commission (SEC) has again extended the forbearance period to another one year after the expiration on 31st December 2018.
Acting Director General of the Commission, Mary Uduk disclosed this in her address at the 3rd and final Capital Market Committee(CMC) meeting held for the year 2018 in Lagos.
“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”, she said.
The SEC boss called on investors to take advantage of this opportunity to claim their unclaimed dividends and bonuses before the expiration of forbearance period.
As part of the decision taken at the CMC, Uduk said the Commission has announced a two-pronged approach to addressing the intractable challenges associated with transmission of shares related to the estate of deceased investors.
According to her, 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, while rules would be developed around the time frame for transmission shares and the fee structure.
As part of efforts to boost the e-dividend mandate and Direct Cash Settlement initiatives, the Commission gave a commitment to the market that it would engage NIBSS (Nigeria Inter-Bank Settlement System) on behalf of the capital market community to facilitate identity validation and account validation to enhance market processes.
She also said that the Commission will 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.
Uduk noted that the Commission is also collaborating with the CBN to update regulations on margin lending, adding that even though the expectations of the market on these issues are high, further deliberations would address them appropriately.
She revealed that in furtherance of the commitment to develop a vibrant Commodities eco-system, the Commission has commenced the implementation of measures to strengthen regulatory capacity by establishing a Commodities Division, stressing that other recommendations of the Committee have been broken down into implementable plans with set timelines.
“An interesting development in the commodities sector is the innovative solution developed by AFEX Commodities Exchange Limited (AFEX) and its partners regarding the use of Block chain Technology to streamline the process of financing agriculture to Smallholder farmers and other players in the commodities markets.”, she said