SEC expresses concern over low investors’ e-dividend enrolment
The apex regulatory authority of the capital market, the Securities and Exchange Commission (SEC) on Monday November 13, 2017, expressed worry over the low level of investors’ enrolment in the ongoing e-dividend policy saying it is not a cheery news to the commission.
Director General of the commission Mounir Gwarzo disclosed this to financial journalists at the post Capital Market Committee (CMC) briefing in Lagos.
The disturbing aspect of the development was captured by the Nigerian Inter Bank Settlement System Plc, (NIBSS) which disclosed that that the numbers of investors’ enrolment for the e-dividend has significantly dropped from August with 50,819 investors’ to 59,204 in September, dropping to a low of 37,153 in the month of October 2017.
The development led to the call by major collaborating stakeholders for a more vigorous awareness campaign. According to Samuel Oluyemi, Head Vertical Markets Group, expectation at NIBSS is to have 50,000 registration every month. The dedication of NIBSS on e-dividend mandate irreversible. Mind you, 136 stockbrokers are connected to the portal with 9 registrars.
Gwarzo appealed to the investing public to go to any bank branches in their locality and enroll, because the commission has already paid for the free services to banks.
Stressing that there is no going back in the deadline of December 31, 2017. Hence after the December 2017 deadline, any investors that wants to do it in the bank will have to pay for the service.
Other issue that was discussed at the CMC, according Gwarzo, was the reports from various sub-committees which includes, the market infrastructures, liquidity, and the committee looking into the Companies and Allied Matters Act (CAMA) and the Investment and Securities Act (ISA). He said they promised to send in the full reports in four weeks’ time.
Gwarzo who used the opportunity to appraise the market performance in 2017 as he acknowledge that the last three month has been very good as figures emanating from the Nigerian Stock Exchange (NSE), Financial Market Dealers Quotation (FMDQ) and Nigerian Association of Securities Dealers (NASD) are looking up.
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