SEC Says Investors with Multiple Names to Forfeit Shares, Dividends

L-R: General Manager Operations, CSCS, Mr Joe Mekiluwa, Director General, Securities & Exchange Commission, SEC, Nigeria, Mounir Gwarzo at the SEC 1st quarter 2017 CMC Meeting in Lagos on wednesday.

By Kingsley Ogunwa InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s Securities and Exchange Commission (SEC) said on Wednesday shareholders who buy shares and registered with multiple names will forfeit  ownership of such holdings.

Mounir Gwarzo, the director general (DG), of the Commission revealed this to financial market journalists at a press briefing after the end of the first Capital Market Committee (CMC) meeting for the 2017 held in Lagos Nigeria.

“Its against the law and the dividend and shares of those who registered with multiple names will be forfeited,” he said.

According to the SEC DG, the shares and dividends of these individuals would be transferred to the Market Development Fund.

Gwarzo said for investors who joggled their names in order to have multiple subscription should be given a forbearance period of six months within which they can lay claims to both their shares and dividends. “For those that have the same name, but joggled it to have multiple subscription and can provide identity and justify they are the owners of the shares, they should be able to claim their shares and dividend, ” he added.

The SEC DG disclosed that the Market Development Fund which will not be managed by SEC; but by other stakeholders in the Nigerian Capital Market will be launched at the next Capital Market Committee Meeting and its board inaugurated.

He affirmed the June 30, 2017 deadline for migration to the electronic dividend platform stands and thereafter no dividend warrants would be issued after that date.

Gwarzo hinted that the transaction cost in the Nigerian Capital Market is being reviewed and would be implemented very soon, the fees are those of the Commission, the Nigerian Stock Exchange  issuing houses and receiving agents.