The Institute of Capital Market Registrars has called on stakeholders to ensure quick adoption of dematerialisation in the market.

The institute also urged shareholders and investors in the capital market to embrace the process, adding that it would help to boost activities in the capital market.

Dematerialisation refers to the elimination of physical certificates or documents of title representing ownership of securities. It is the process of conversion of share certificates into electronic documents.

The President, ICMR, Mr. Bayo Olugbemi, said embracing dematerialisation would have immense benefits for shareholders, adding that it would reduce the incidence of loss of certificates to the barest minimum.

Olugbemi spoke on Thursday ahead of the 4th annual conference of ICMR in Lagos.

He said, “Dematerialisation will speed the processing of offers, thereby enabling investors access to their shares for desired transactions; eliminate the risk of loss or theft of certificates; reduce the occurrence of forgeries or transactions relating to shares, promote high level of transparency.

“The process would also go a long way to enhance investors’ confidence and facilitate trading in shares and position the Nigerian capital market as internationally competitive and transparent. Therefore, we hope that shareholders would embrace the process.”

According  to  him, ICMR is mindful of the fact that there is need to bolster investors’ confidence, stressing that the easiest way to do this is for the market to adopt full dematerialisation.

He said that the need to enlighten stakeholders on the benefit of dematerialisation formed the theme of this year’s ICMR conference, which he gave as ‘Improving Liquidity and Investors’ confidence – the Dematerialisation Option.’

He explained that the purpose of the conference, starting on Friday (today), is to sensitise members and the general public to the inherent benefits of dematerialisation.

“The conference will discuss the perspectives of stockbrokers, registrars and the road map of dematerialisation,” Olugbemi said.

He added that during the conference, the Institute would confer fellowship awards on deserving members and some new associates would be inducted.

Managing Director/Chief Executive Officer, Central Securities Clearing Systems Limited, Mr. Kyari Bukar, has also said that the dematerialisation process will help to ease shareholders’ plight concerning their dividends and share certificates.

A statement by the CSCS on Monday quoted Bukar as saying that it was necessary for investors to embrace the process of share dematerialisation.

Bukar noted that it would be in the best interest of shareholders who were still holding their share certificates in paper form to dematerialise them, adding that there were numerous advantages in the process.

Source: Punch (By Udeme Ekwere)