SEC Offers Forbearance to Multiple Subscription Investors with Relevant KYC by December 2017

August 17, 2017

By InvestAdvocate

Lagos (INVESTADVOCATE)-The Securities and Exchange Commission (SEC) is set to offer investors with multiple subscription a forbearance by December 2017 if they can prove their case through the Know-Your Customer (KYC) process, Mounir Gwarzo, director general (DG) of the Commission disclosed at the second quarter  Capital Market Committee (CMC) meeting press Briefing on Wednesday.

Gwarzo said the Commission has set up a committee that would look into the matter and authorise the status of multiple accounts.

“We also discussed on multiple accounts, we have set up a committee that are to authorise the status of multiple accounts,” he said.

According to him, this consists of those who bought shares with multiple applications and joggled their names to give them undue advantage over other investors who bought once; which according to him is still an offence; but they would be given forbearance latest December this year provided they prove they are the genuine owners of the names through the KYC process.

“This is where you subscribe with your first name, middle name and last name and probably another one with only your first name and middle name, or buying in different ways by joggling your names, which is also an offence because that amounts to multiple application and gives you an undue advantage over the other person that only bought once; but because you are probably the same person that bought those shares, the market agreed to give you a forbearance as from now to the end of December; but with a caveat that that investor must come forward with the relevant KYC and any KYC now will involve you BVN,” the DG of SEC said.

He says if an investor can prove ownership of the names through the KYC, the person can lay claims on those investments.

“Once you can justify that you are the same person that has the first name, middle name and the last name, you are also the same person that has the first name and the last and the first name and the middle name, you should be able to claim those investments if you do so before the end of this year,” Gwarzo affirmed.

According to him, those who applied with completely different names are most likely to forfeit their investments whose proceeds would be channeled to the market development fund, sighting the reason that they would not be able to prove ownership through the KYC process.

“For those that bought those shares with completely different names, certainly there is no KYC in this world that can justify you are the same person, for those ones there shares would be forfeited completely. We agreed that proceeds of those investments will go to market development fund,” the DG of SEC added.