Tuesday, September 18, 2018 7.00PM / Proshare WebTV
The role of the Investments and Securities Tribunal in Nigerian Capital Market Dispute resolution, came to the fore at the just concluded two-day workshop organized for legal practitioners and market stakeholders in Lagos and the South-West region of the country.
It was an opportunity to discuss and set clarity in the scope and guidelines of the IST, as a competent court of jurisprudence with the statutory powers to decide market related cases in Nigeria
At the Opening day of the workshop Mr J.U. K Igwe (SAN) who delivered the first paper harped on the need for the IST to meet the demands of international global best practices.
Mr Igwe made a strong case for the differentiation of the IST from the appointment of federal boards and parastatals in the country, to ensure that it does not miss the cycle of appointments.
He shared further that the establishment IST was the prelude to the qualification and final admission of the Nigerian capital market jurisdiction as Appendix A signatory to the International Organisation of Securities Commission, IOSCO’s Multi-lateral Memorandum of Understanding (MMOU).
Speaking further he said the IST promotes the rule of law in Nigeria, which is key to the economic development of the nation.
The second speaker at the opening day session Mr Bolaji Balogun, Chairman Lafarge Group Nigeria in his presentation stressed that the capital market provides capital formation, that can foster industrialization in the country.
Mr Balogun believed the capital market served as a veritable platform for mobilizing long-term capital, to address critical economic issues like infrastructure.
Giving an overview of the role of the Central Securities Clearing System in the Nigerian capital market, the General Manager Business Development Dr Joe Mekiluwa shared that it was a Central Securities Depository, that helped to facilitate the clearing of securities & transactions on the floor of the exchange.
The other roles of the CSCS outlined by Dr Mekiluwa include;
1.Clearing and settlement on the principle of delivery v payment (DVP)
2. Issuance of International Securities Identification Number (ISIN) codes
3. Issuance of Central Clearing House Number (CHN) to facilitate easy investor identification
4. Providing online services to market participants for real time access to information i.e Registrars, NIBSS, FIS Dealers and Stockbrokers.
5. Providing platform to facilitate dual listing of securities and cross border transactions
6. Electronic Document Management System (EDMS)
Dr Mikeliuwa explained the settlement cycle which T+3 for the equities market, which meant that if the transaction was on a Monday, it will take three working days after to reflect payments which will be technically Thursday.
On his part Dr David Ogogo the Registrar/CEO of the Institute of Capital Market Registrars speaking on the role of “Registrars in the Nigerian Capital Market”, listed the following as some of their key roles;
1. Making sure that Initial Public Offer documents are delivered to relevant parties
2. To ensure that there are no incidence on multiple applications in the market offers
3. Update registered members and shareholders regularly
4. Ensure the dividend payments are mailed to shareholders
5. Drive the current e-dividend mandate to address the issues of unclaimed dividends
6. Reconciliation of records and payments especially in the case of the death of shareholders
Dr Ogogo speaking further informed stakeholders that the ICMR will work with IST to fast-track arrangement through a certification programme.
In an interactive session stakeholders called on the registrars to improve their service delivery in the area of notification on dividend payment and the notification of rights issues.
The Chairman/CEO of the IST Mr Siaka Idoko-Akoh, Esq was the Chief host of the workshop.