...As Commission Put Strigent Measure in Place To Check Further Abuse
…Encourages Youth To Imbibe Saving Culture
The Securities and Exchange Commission (SEC), has disclosed that listed companies have been found to fake operating positions to get regulatory approval to delist from the equities market.
The Commission said to further checkmate such scenario from playing-up again due to its zero tolerance for infractions, stringent measures and rules is worked on to guide against companies applying for delisting on questionable grounds.
The SEC Director General Mr. Mounir Gwarzo made this remarks on Wednesday in Lagos at the Commission’s commemoration of the 2017 World Savings Day & Financial Literacy Week.
Gwazo who was represented at the occassion by the Commission’s Director of Marketing Development, Mr. Henry Roland, said “We have discovered recently that companies fake situations to make their going concerns look bad to investors, and their by use it to seek for delisting.
“They come up with fake situation and make the company look sick, and after delisting for three months they bounce back. Its the investors that suffers when a company is delisted, as all their holdings in the company is lost completely.
“We are putting in place stringent measures and rules that we properly scrutinize companies seeking to be delisted from the market.
“They will present the company as not being healthy and when delisted, you will be surprise they will bounce back stronger after three months. SEC is currently working out rules to make condition to delist more stringent and even sanction and ban directors of the companies perceived to be mischief makers,” he said.
Roland explained that the choice to mark the day with young ones from secondary schools was to plant the seed of saving culture in them at their tender age.
He advised the students to start saving at this age by opening joint account with their parents or guardian so as to achieve financial independence, provide for accommodation, tackle unforeseen expenses, education and retirement in the future.
He added that, students can use other means to save their money by making use of their skills, involving in entrepreneurship activities, making out a budget, forming a savings club in various school via the consent of heads of institutions.
The Chairperson, Financial Literacy Committee, SEC and Chief Executive Officer, United Capital Plc, Oluwatoyin Sanni while advising the students who attended the programme from various part of Lagos said: “If we don’t safe today, we cannot guarantee the future. For the young ones, you have to learn at this age the important of savings. There is need to imbibe the culture of setting aside money for the future. This will help you guarantee the future”.
To inculcate capital market investment culture in children of school age, SEC in conjunction with of Federal Ministry of Education Tuesday said they have finalise plans to introduce capital market studies in school’s curriculum.
The Commission said introducing capital market as a subject in primary and secondary schools would go a long way in boosting the Commission’s financial inclusion strategy.
“Capital Market Studies will be introduce in schools next year by September. We have the approval of the education ministry and the curriculum is being developed,” Gwarzo “said.
Schools in attendance at the event includes, students from May Day college, Anglican Comprehensive School, Apapa Senior School, Regan Memorial Baptist Schools, Global International Schools, Kings College, Top Flight Schools and CMS Grammer School.