The Acting Director General of the Securities and Exchange Commission (SEC Nigeria), Ms Mary Uduk, has assured investors in the nation’s capital market that their investments will not be impacted negatively by the 2019 elections.
Uduk was quoted in a statement as giving the assurance during her interaction with journalists on the sidelines of the just-concluded World Bank/International Monetary Fund Annual Meetings in Bali, Indonesia.
While noting that the upcoming elections might make some investors to hold back their investments and sell or adopt a ‘wait and see’ attitude until after the elections, the SEC boss said that there was nothing to worry about on that as it is a common trend globally.
According to her, the major contributory factor to the current downward trend of the market is the outflow of foreign investment, which has led to sell pressures accumulating into depressed prices.
She pointed out that this was one of the reasons why the commission was mapping out strategies to build confidence in the market and encourage more retail investors.
The SEC boss said: “We understand the importance of foreign investors for market efficiency, liquidity and transparency. However, it is also important for us to develop local investors by building their confidence and encouraging their participation.
“We have made a lot of progress in that direction like risk-based supervision, zero tolerance to infractions in the market, and complaint management framework, among others. If you do not tolerate infractions, investors will know that somebody is watching their backs”, she added.
Uduk explained that the commission had other initiatives such as the e-dividend and direct cash settlement that were aimed at encouraging investors in the capital market.
The investment expert disclosed that SEC was exploring avenues to deepen the market through the introduction of different products such as derivatives, non-interest capital market products and commodities, adding that rules on derivatives as well as having a standing committee in developing a vibrant commodity ecosystem are being finalised.
This is even as she explained that SEC was embracing technology innovation as a strategic option to improve the performance of the nation’s bourse.
Uduk said: “In terms of what we have done, we are working on automating a number of our operations and we are encouraging those we regulate to embrace technology and have minimum technological standards and encourage new innovators, especially fintechs.
“Fintech companies offering capital market products and improved processes are expected to collaborate with the commission through some of our existing arrangement like the regulatory sandbox that we are currently working towards implementing.”
Uduk maintained that with all the initiatives being embarked upon by the commission, the Nigerian capital market was strongly positioned to manage its risks, become deeper in investments and realising its growth potential.
