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E-dividend: SEC expresses concern over delayed payments

Securities and Exchange Commission (SEC)

Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC), said in spite of efforts in the implementation of the Electronic Dividend Mandate Management System (eDMMS), investors have continued to lament delayed payments of e-dividend and the cumbersome manual process among other shortcomings. A large number of investors are also still unaware of the eDMMS and have not mandated their accounts.

 

A communique signed by Lamido A. Yuguda, Director General of SEC at the second Capital Market Committee (CMC) Meeting for the year held on Thursday, August 18, 2022, said the Commission would, however, continue to create awareness in this regard.

 

The communique said capital market operators must also do more to demonstrate, through their activities, an efficient capital market that prioritizes the interests of investors.

 

“As part of our efforts to stem the tide of fraudulent activities of unregistered investment crowdfunding platforms, the Commission warned the operators of such platforms that they stand the risk of being prosecuted. “The Commission has an existing regulatory framework that permits private companies with the required structure and mechanism to raise capital from the public through crowdfunding.

 

“All crowdfunding platforms must register with the Commission.On Monday, June 27, the Capital Market Master Plan Implementation Council (CAMMIC) submitted the revised Nigerian Capital Market Master Plan (2021 -2025) to the Honourable Minister of Finance, Budget and National Planning.

 

The Commission will be launching the revised Master Plan at the next CMC meeting in November 2022,” it stated. It said the commission obtained donor funding towards acquiring and deploying a securities market surveillance system.

 

It noted that the deployment of the surveillance solution would improve the Commission’s regulatory and supervisory capabilities over securities trading activities and help modernise the local capital markets, ensure market integrity and transparency across all trading platforms, and boost investor confidence. It said all of these would bid well for the capital market and support its growth.

 

It stated that the market was informed that the Commission was working out modalities to organise a forum of prospective collateral managers to apprise them of the opportunities in this sector and registration procedures with SEC.

 

“Following the conclusion of the Commodity Standards Stakeholders’ Sensitisation Workshops held in Lagos and Kano in November 2021, the SEC continues to engage the Standards Organisation of Nigeria (SON) deepen the Commodities Ecosystem. SON is currently finalising its review of commodities standards in line with comments received from stakeholders at the two workshops.

 

“The Commission continues its engagement with the Honourable Minister of Finance, Budget and National Planning on the request for tax exemption for corporate bonds.

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