… remarked on reducing unclaimed dividend figure presently at N190 billion
The Securities and Exchange Commission (SEC), on Friday, said the growing infrastructure deficit in the domestic economy can be adequately addressed by exploring cheap funds in the capital market.
The commission said that, stakeholders as well as the government, and coupled with the growing incidence of the Country’s demographics, must as a necessity, put the needed infrastructure in place to ensure growth and development.
The DG SEC, Mr. Lamido Yuguda who made this remarks today during a virtual Post-CMC media briefing, said having the needed infrastructure in place will prepare the economy against the population explosion coming ahead.
“We have already seen the increasing demographic challenge. The capital market is really positioning itself to take the lead, in the drive at helping to grow the economy.
The SEC DG who reiterated the Commissions’ zero tolerance posture towards market infraction, said one of the cardinal responsibility of the commission, which is in its DNA is to protect investors.
According to him, “the commission engages in rigorous exercise more especially as it has to do when companies seek to exit the market, to ensure that minority shareholders are not disfranchised. I have had occasion where I requested that the pricing of shares should be reviewed, when the buy-out price for minority shareholders seems not to be adequate.
Speaking on the issue of unclaimed dividend in the market, the SEC DG said that, rather than focusing on the unclaimed dividend figure which currently stand at N190 billion, effort of the commission should be commended in the reduction trajectory of the issue of unclaimed dividend.
He noted that, the unclaimed dividend legacy issue which is being addressed head long, has seen the commission aside other modalities, tightening it’s KYC, so that all information is captured about intending investors at the point of purchase of shares.
The SEC boss who acknowledge the troubling nature of the unclaimed money, noted that, it was occasioned by the issue of identity management, multiple subscriptions, not much information about the subscribers. But that, the commission through it’s electronic mandate scheme and the help of NIBBS have ensured that the investment platform is customer friendly even as this have made the numbers reduced significantly.
On specific reforms on going as regards the Ten year Revised Master Plan (2015-2025) at the commission to help put the capital market on a growth trajectory as expected from the present administration of President Ahmed Bola Tinubu, Mr. Yuguda explained that, to date, the commission have put in place a Tech Board at the market, Collective Investment scheme, e-dividend, The Commodity Exchange Market, be more IT friendly, focus on non interest area not exploited, as well as strengthening the capacity of the commission to discharge it’s mandate amongst others.