SEC To Sanction Companies, Registrars Over Unclaimed Dividend
The Securities and Exchange Commission (SEC) has warned quoted companies and capital market registrars to desist from selective payments and distribution of dividends.
Director-General, Securities and Exchange Commission (SEC) Mr Lamido Yuguda stated this at the 10th annual conference of the Institute of Capital Market Registrar’s (ICMR) with the theme ‘Reinventing the Nigerian Capital Market for Growth: The Digital Technology Approach, held in Lagos at the weekend.
Yuguda, who said that some registrars are unwilling to release the unclaimed dividends in their custody and have employed several antics to frustrate shareholders from enjoying the benefits of the E-DMMS platform, urged the ICMR to encourage its’ members to uphold the code of ethics of the profession and as contained in the rules and regulations of the commission.
“Capital market operators, have a duty to uphold the integrity of the capital market to foster investor confidence as investors are the greatest assets any capital market has.The Commission would therefore not hesitate to sanction any erring operator in relation to unclaimed dividend or any other issue,” Yuguda said.
The SEC DG also stressed the need for an optimal regulations of digital technology in the capital market to forestall likely disruptions that could threaten investors’ confidence.
Yuguda said the Commission had recognised that if the application of digital technology to financial market practices are not properly regulated, it could lead to outcomes that would threaten investor confidence in our market.
Yuguda noted that in consistence with the position of IOSCO, the commission has been sensitive to the regulatory challenges of a changing technological environment and has sought to balance the benefits of encouraging innovation and the use of new technologies against the need to protect investors and maintain orderly markets.
Yuguda, while noting that the Commission’s priorities are to ensure investor trust and confidence as well as fair, orderly, transparent, and efficient markets, said the Commission had issued rules to regulate several technology driven activities in the capital market such as crowdfunding, robo-advisory and digital sub-broking.
“To actualise this, we have adopted a three-pronged approach to regulating Digital innovation, which is safety, market deepening and provision of solution to problems,” he said.
