Electronic Offering Will Tackle Unclaimed Dividends Menace- SEC

The introduction of electronic offerings in the Nigerian capital market has been described as a major achievement that will help resolve the challenge of unclaimed dividends.
That is why, according to the Acting DG of the Securities and Exchange Commission, SEC, Ms. Mary Uduk, rules have been developed in that regard to guide its implementation.
Speaking during an interview, weekend in Abuja, Uduk said the SEC is excited about the multiplier effects of electronic offering, which will also help overcome the problems of identity that were prevalent in previous listings.
According to her, “we believe that electronic offerings will help solve the problems of unclaimed dividends so it’s something we are backing seriously
“It has a lot of advantages, it means that people who are not close by during an offering can invest, we are able to get the data we need for regulation, the offering is more efficient and it is cost saving. It is something we are working on; the rules will soon be out for everyone to use.
Another advantage of e-offerings, she continued, is that when fully operational, an investor in Ghana or South Africa can invest in the Nigerian Capital Market via electronic offering.
“That is the idea but when the exchanges finish putting it together that is what will happen. Ours is to make the rules and regulate, but that’s the idea. We want to open up our market so that more people can invest from different parts of the world.
“We want a deeper, bigger, more attractive market. We think our economy is big enough to have a much bigger market. The capital market makes up less than 10% of the GDP of the country. If you look at other countries even South Africa, it is over 100% of GDP. We believe we have a large room for expansion and that is what we are pursuing” Uduk stated.
On e-filing, Uduk disclosed that the commission is working hard to ensure it commences in the not too distant future.
Continuing, the said the SEC is “in the process of deploying the software that will help with that. That will make filing more efficient, make it easier for capital market operators to send in returns to us and make the market more transparent”.

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