Friday, 22 March 2019 6.30PM / SEC Nigeria
Capital Market Regulator,
The Securities and Exchange Commission of Nigeria says it will in 2019 review the 10 year Capital Market Master plan, to meet the current macroeconomic
realities in the country.
Also the capital market
committee approved the rules for Green bonds, and would in the nearest future introduce
the rules on derivatives trading.
This was part of the statements from
the Acting Director-General of SEC Nigeria Ms Mary Uduk at the Q1, 2019
Post-CMC Press Briefing in Lagos.
Here are the key resolutions from
the SEC Nigeria CMC meeting;
- The Commission has made progress in
attempting to resolve the issues around transmission of shares related to the
estate of deceased investors. This process has commenced with the Lagos State
Probate Registry and the Commission, with the support of relevant
stakeholders, shall carry out an engagement/enlightenment programme for the
- The Commission will direct
Public Companies to grant its representatives and Registrars at
AGM Meetings, to address shareholders on the benefits of distributing
annual reports electronically.
- The Financial Literacy Technical
Committee has developed and included financial literacy contents
on dedicated web pages on the SEC website. We encourage investors to
utilize these pages to learn more about the capital market.
- As part of our efforts to ensure
successful implementation of the complaints management framework, the
Commission has ensured that all Trade Groups are duly registered. The
Commission therefore is working on institutionalizing periodic
meetings with the Heads of Trade Groups to define their roles
and address their challenges.
- The capital market community recognizes
the importance of the E-IPO project to improve issuance processes and
encourage more investor participation.
- The draft framework for its implementation
has been developed and presented at the CMC meeting. The SEC has exposed
the framework and rules guiding the e-IPO, and stakeholders now have
up till Friday, March 29, 2019 to review and send their suggestions
- The existence of a harmonious relationship
between the Commission and the CAC is very vital to the development of the
Nigerian capital market. To this end, a technical committee would be
constituted to address mutual issues of concern between the
Commission and the CAC.
In addition to the resolutions
reached by the CMC, members held discussions on other pertinent issues in
the Nigerian capital market. These include;
- Engagement between the Commission and
CBN on margin lending has since commenced.
However, deliberations are still ongoing on the inclusion
of Bank shares in the margin list.
- The market wide committee on identity
management and account validation for transactions in the capital market was
enjoined to fast track its activities. In furtherance of this initiative,
the Commission is to engage the CBN to facilitate the validation
process through NIBBS.
- It was acknowledged that the
Dematerialization exercise was successful. However, the implementation of this
initiative was restricted to shares of listed companies.
- Consequently, the CMC is advocating for
the extension of the exercise to shares of unlisted public companies.
This would enhance liquidity and ease market processes.
- The market advocated for the Commission to
take strong actions against Company secretaries who aid the trade of shares
of unlisted public company outside a SEC recognized platform as
required by the law.
- To showcase the immense potentials of the
commodities ecosystem to the economies of sub-nationals,
the Commission, in collaboration with the commodities ecosystem
implementation committee, is planning activities to sensitize members
of the Nigerian Governors Forum, especially now that general
elections are over.
- To this end, an international conference
is being proposed to hold in September 2019, with experts from within and
other jurisdictions expected to be in attendance.
- The market was also informed of some successes recorded thus far in the
regularization of multiple share subscription.
- Through this
exercise, some Nigerian investors in diaspora have been able to
consolidate their shareholding accounts. Similarly, several local investors
with numerous accounts have also been able to consolidate their investments.
- We therefore enjoin the general
public to take advantage of this initiative to regularize their shareholding
accounts before the December 31, 2019 deadline.
1. Domestic and
Foreign Portfolio Participation in Equity Trading - February 2019
2. Nigerian Capital
Market MasterPlan:13 Out of 99 Initiatives Have Been Implemented- Mary Uduk
3. Domestic and
Foreign Portfolio Participation in Equity Trading - January 2019
4. SEC’s 2019
Budget Seminar Explores Risks and Opportunities In The Nigerian Capital Market
5. Welcome Speech
By Bola Adeeko At The NSE Sustainability Reporting Implementation Workshop
6. Union Bank Hosts
Financial Markets Dealers Association Meeting
7. SEC Nigeria
Holds Q1 2019 CMC Meeting on March 21, 2019
8. NSE, GRI Host
Sustainability Reporting Workshop; Unveils Sustainability Disclosure Guidelines
9. 2018 Africa
Capital Markets Watch
10. NSE Launches New
Indices Focused On Investment Style Orientations in collaboration with Meristem
11. On the
Efficiency of Stock Markets: A Case of Selected OPEC Member Countries
12. Domestic and
Foreign Portfolio Participation in Equity Trading – December 2018
13. NSE Issues
Circular On The Adoption and Compliance With Nigerian Code of Corporate
14. The Capital
Market: Facing Uncertainty and Grabbing Opportunities
15. Sectoral Market
Capitalizations – Oil and Gas Sector Recorded 7.24% Growth in 2018
16. A Better
Backdrop For SSA Stock Markets
17. Growth of
Securities Listed on NSE – Total Securities Listed Increased By 9.58%