Shareholders Want SEC, NSE To Revisit Sanctions Against Firms

Capital market shareholders have called on the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) to review the penalties imposed on quoted companies to attract new listing.
They made the plea at an Investors Clinic Programme to mark IOSCO World Investor Week 2017 organised by SEC in Lagos.
According to them, incessant penalties on companies was discouraging companies from seeking quotation on the nation’s bourse, thereby affecting the growth and development of the market.
In his comments,  the National Coordinator Emeritus, Independent Shareholders Association of Nigeria (ISAN), Mr Sunny Nwosu, said that there was need for friendly policies and regulation by the capital market regulators.
Nwosu said lack of proper compensation to investors that lost their funds during the market meltdown contributed to poor investor confidence in the market, whereas brokers were given forbearance package.
He also frowned at the commission’s move to invest the unclaimed dividend funds into special funds, saying that shareholders were not in support of the initiative.
Nwosu said that the proposed issuance of electronic annual report should not be made mandatory, but optional.
He said the law stipulated that annual reports must be posted to shareholders 21 days before the annual general meeting.
Also,  the President, Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, who commended SEC for organising the clinic, said that market regulators must pursue friendly policies and initiatives to put the market forward.
Okezie said that investment of unclaimed dividend funds into special funds must be dropped in the interest of the market.
of approval share reconstruction for companies used in rubbing investors.
In his reaction, Chief Timothy Adeshiyan, the President, Nigeria Shareholders Solidarity Association (NSSA), said that market regulators should be fair in their regulations and penalties.
Adeshiyan said that penalties were paid from the shareholders funds’ and was also discouraging investor confidence.
Earlier, Mr Mounir Gwarzo, the SEC Director-General, said that the World Investor Week (WIW) was a week set aside for educating investors on their rights.
Gwarzo, represented by Mr Eddy Rowlands, the Executive Director, Market Development, said that the commission would continue to embrace initiatives that would move the market forward.
He said that the clinic would make investors to be better equipped at the end of the programme.
Gwarzo said that the initiative would enlighten investors and shareholders on what regulators and market operators were doing to uplift the market.
He said that the commission had established financial inclusion programmes to increase market participation and as well boost Collective Investment Scheme among market women and men.
Mr Deji Balogun, the Chief Executive Officer, AFEX Commodities Exchange, commended the commission for taking the capital market to the younger generation.
Balogun also tasked market operators on the need for introduction of new products that would appeal to the younger generation.
He said that opening of stockbroking accounts for new investors should be done through smart phones in line with present realities.
Also, Dr David Ogogo of the Institute of Capital Market Registrars, said that the issue of the unclaimed dividends would soon be an issue of the past.
Ogogo said that registrars would continue to work with market regulators and operators to ensure effective implementation of the 10-year capital market Masterplan.

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