SEC in discussions on refunds to investors

SEC in discussions on refunds to investors

 

 

August 1, 2011
 
The Securities and Exchange Commission has announced plans to refund investors who lost money in the defunct All States Trust Bank - Investors lost funds in the bank’s public offer that was floated shortly before its liquidation.
 
The SEC Commissioner for Operations, Ms. Daisy Ekinne, gave this assurance to shareholders during a seminar organised by SEC on Investors/Issuer Education Outreach programme on Friday.
 
She said that discussions were ongoing with the Nigerian Deposit Insurance Corporation, adding that the outcome of the talk would lead to a refund to all investors, who participated in the public offer of the bank.
 
She noted that the bank sent its public offer application to SEC for approval before allotment of its shares to the investors that subscribed to the offer.
 
She added that it was during the process that the state of insolvency of the bank was announced by the Central Bank of Nigeria, which subsequently resulted in the bank’s liquidation.”
 
According to her, in order to recover investors’ money in the bank, SEC stepped in immediately the announcement was made by the CBN, by getting in touch with the receiving banks.
 
She said, “I remember when All States Trust Bank came to the market. They sent their application to us, and we had actually approved the application before allotments, when the CBN announced the banks liquidation; but the offer had already opened”
 
“We have been in discussion with NDIC so that investors, who subscribed to the offer, can have their funds back. However, the discussion is still ongoing. SEC is working seriously in trying to resolve that problem. It is an issue we need to resolve, and we are going to resolve it.”
 
The Rivers State Director of Commerce, Mr. Nelson Brown, had tasked the capacity of the market regulators to protect investors from swindlers in the market, when companies that usually defrauded investors are usually certified by the regulators.
 
He said such a certification was given to the public offer by the Standard Trust Bank, which got liquidated while the offer was in progress, thereby resulting in huge losses by all investors that took part in the offer.
 
Source: Punch/ Udeme Ekwere

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