Public Offer: SEC Gives Subscribers Deadline To Consolidate Accounts

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By OLUSHOLA BELLO, Lagos
The Securities and Exchange Commission (SEC), has called on investors who participated in multiple subscription in public offer exercise to consolidate their account before September 1, 2017.
Multiple subscriptions to public offers occurred during the market boom when investors joggled their names in different forms to enable them purchase more than the permitted units of shares in public offers.
The Commission being aware of the negative effect of this act to the market, constituted a market wide committee with the aim of proposing the manner by which securities as well as dividends accruing to such persons via multiple applications should be treated.
According to the notice obtained from SEC’s website, the Committee had concluded its assignment, and its recommendations were adopted by the entire capital market community.
The Commission said, “Consequently, the commission on behalf of the Nigerian capital market community wishes to inform the general public as follows: that forbearance is hereby granted to investors whose identities can be verified.
“Concerned investors are therefore advised to contact their stockbrokers or registrars with proof of identity to consolidate their accounts on or before September 1, 2017, failing which, all Securities and accruing dividends shall be transferred to the Nigerian Capital Market Development Fund and that with regard to Securities, which have not been claimed and cannot be verified, such securities as well as accruing unclaimed dividends shall be transferred to the Nigerian Capital Market Development Fund.”
The Commission recently said it was set to launch a market development fund this year, to lead efforts in galvanising capital market activities in the country.
The director-general of the Commission, Mr. Mounir Gwarzo, disclosed this at the first post-Capital Market Committee press conference for the year 2017.
He said the fund, which is not a SEC fund, would be rolled out in the second Capital Market Committee for the year.
Giving further updates on the e-Dividend, Gwarzo informed correspondents that over 2.2 million Nigerians have mandated their accounts, and by June 30, 2017 there will be no more issuance of dividend warrants.
He stated that SEC is developing a portal for investors, to enable mandates for accounts.
For Direct Cash settlements, the DG said the CMC had done a robust work on it and it will be mandatory for all investors, from September 1, 2017.
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Source: News

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