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We Will No Longer Underwrite Capital Market Processing Fee – SEC

….says no going back on Oando Plc’s forensic audit

The Securities and Exchange Commission (SEC), has said that it will no longer underwrite processing fee for capital market investors.

This is even as the Commission disclosed that 2.1 million investors in the nation’s capital market had already done their free e-dividend registration before the free registration expired on December 31, 2017.

Briefing journalists on the on-going Capital Market initiatives by the Commission, Acting Director General of the Securities and Exchange Commission (SEC), Abdul Zubair, explained that all investors that were yet to enroll would complete their e-dividend registration at a cost of N150.

He said: “For the avoidance of doubt, the N150 fee would not be demanded from investors at the point of registration and/or submission of completed e-Dividend Mandate Forms.”

Meanwhile, the Ag. Director General has also disclosed that the Commission has extended Forbearance for Multiple Accounts Consolidation till 31st March, 2018.

According to him, the move will encourage many more investors to consolidate their multiple subscriptions into one account.

He clarified: “Accordingly, investors that bought shares of the same company during public offers, using different names, are allowed till 31st March, 2018 to continue to approach their Stockbrokers or Registrars, to regularize their shareholdings, in line with SEC Rules on customer identification. Thereafter, all shares not regularized shall be transferred, on trust, to the Capital Market Development Fund.”

In addition, the capital market regulator hinted that all Registrars had been directed to stop the issuance of dividend paper warrants with effect from January 1, 2018.

“For the avoidance of doubt, all paper dividend warrants issued up till December 31, 2017 are valid and should be honoured. Banks and Registrars are accordingly implored to please note and adhere,” he stressed.

On the forensic audit of Oando Plc, Zubair insisted that there was no going back as the Commission would continue with the audit process, adding that the process should have started but due to legal constraints.

In his comments on the e-dividend registration of investors who failed to meet the December 31, 2017 deadline, the Commission’s Director External Relations,  Mr. Henry Rowlands, explained that the Commission had consulted with other stakeholders, allaying investors’ fears that they will not be charged until their registration is approved.

He however explained that “where the investor’s account is not funded, the parties have agreed that such an enrolment request will be disapproved because the account is not funded and the investor will be alerted accordingly”

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