By InvestAdvocate
Lagos (INVESTADVOCATE)-Shareholders of the Nigerian Capital market (NCM) on Saturday advocated for regulator friendly policies at the Securities and Exchange Commission (SEC) Investors Clinic Programme to mark IOSCO World Investor Week 2017.
The friendly policies the shareholders sought include reduction of incessant penalities imposed on quoted companies on the Nigerian Stock Exchange (NSE), a reduction on withholding taxes, opposing the channeling of unclaimed dividends into a special fund, advising the electronic annual report be made optional and not mandatory.
These anomalies shareholders say are discouraging companies from remaining on the NSE, attracting new lisitings and thereby affecting returns on investments.
Sunny Nwosu, the national coordinator Emeritus, Independent Shareholders Association of Nigeria (ISAN) in his comment advised the Commission and NSE to adopt friendly policies and regulation to boost the Nigerian Capital Market.
He frowned at the lack of compensation to investors that lost huge investments during the 2008 capital market downturn. According to him, Stockbrokers were duly compensated through forebearance packages; while investors got nothing.
Nwosu also advised against SEC’s move to put the unclaimed dividend funds into a special fund, “ We are not insupport of this move by SEC to invest unclaimed dividends fund into a special fund,” he said.
On the issue of the electronic annual report, he advised that it should be made optional and not mandatory, “the law says that annual reports must be sent to shareholders by post 21 days before the annual general meeting, if this is done properly, there will be no issues,” he added.
On his part, Moses Igbrude, the ISAN secretary advised regulators to address the issue of penalties in order to boost confidence at the nation’s capital market, “ a company with a share capital of N200 million and you are penalising them to the tune of N400 million, this is not proper and would discourage investments, “ he affirmed.
According to Igbrude some companies had delisted from the Nigerian bourse as a result of incessant penalties; while new ones are skeptical to list.
He frowned at the issue of share reconstruction for companies; which he said so many companies use that method to rob investors of their investments; rather he called on the NSE and SEC to encourage the companies on share buyback initiative which is a better option.
Timothy Adeshiyan, the president, Nigeria Shareholders Solidarity Association (NSSA) in his reaction advised regulators to be fair when it comes to the issue of penalities and regulations.
According to him, these penalities are paid from the shareholders funds’ which would erode investors confidence in the market.
On his part, Boniface Okezie, the president, Progressive Shareholders Association of Nigeria (PSAN), also advised regulators to pursue friendly policies and initiatives to boost investors confidence.
He also like the others who spoke before him frowned at the moves by SEC to channel the unclaimed dividends fund into a special fund; which he said is not to the best interest of the capital market.
Okezie also commended SEC for zero tolerance when it come to market infractions. Last month SEC annouced the ban of rogue chief executive officer (CEO) of Partnership Investment Company Plc and Partnership Securities Limited , Victor Ogiemwonyi for life from holding directorship position in any public company in Nigeria for his unprofessional conduct in respect of the activities of both companies and also withdrawn the operating license of the companies.
The Commission is also currently prosecuting BGL Group and its officials at the Chief Magistrate Court Zone 6, Abuja on charges of criminal conspiracy, Breach of Trust and cheating contrary to Sections 96, 312, 322 and 323 of the Penal Code Law, Chapter 89.
Earlier, Eddy Rowlands, the executive director, Market Development, SEC who represented Mounir Gwarzo, the SEC director-general, said that the World Investor Week (WIW) was a week set aside for educating investors on their rights.
He said that SEC would continue to embrace initiatives that would boost investors confidence and move the market forward.
According to Rowlands, the clinic was designed to sensitize and better equip investors at the end of the programme. “This initiative would enlighten investors and shareholders on what regulators and market operators were doing to uplift the market,” he affirmed.
On his part, David Ogogo of the Institute of Capital Market Registrars (ICMR), said that the issue of the unclaimed dividends would be resolved as the registrars would continue to work with market regulators and operators to ensure effective implementation of the 10-year capital market Masterplan.
Deji Balogun, CEO of AFEX Commodities Exchange, praised SEC for taking the capital market to the younger generation through its activities at the secondary and tertairy institutions.
He urged market operators on the need for introduction of new products that would appeal to the younger generation. He suggested that opening of stockbroking accounts for new investors should be done through the use smart phones in order to meet up with current realities.
On Sunday Global securities regulator, the International Organisation of Securities Commissions (IOSCO) concluded the first World Investor Week by bringing investors education and protection attention to the global public.
Over the past week, securities regulators and other stakeholders from more than 80 countries on all continents worked toward the common goal of educating and protecting investors and raising awareness of how to be a smart investor.
