Nairametrics| The Securities and Exchange Commission (SEC) has given a six month grace period to individuals who made illegal subscriptions of shares. After the grace period, SEC will confiscate the shares and accruing dividends. The DG of the commission made this statement at a media be briefing. Here are key points from the briefing:
- SEC has set up a Nigerian Capital Market Development Fund (NCMDF) with a seed fund of N5 billion.
- SEC would hence forth prosecute investors who use false identities to buy shares.
- Such shares will be confiscated and handed over to the NCMDF.
- Dividends from such shares will also accrue to the fund.
- Membership of the fund will comprise representatives from SEC, trade groups, shareholder associations, and Self Regulatory Organizations.
The DG also gave an update on the dematerialization programme:
- 2.2 million investors have mandated their accounts for e dividends.
- All shares in the market have been migrated to CSCS.
- Total volume of shares migrated is 187 billion.
The June 30 deadline for issuance of physical dividend warrant still stands. In addition, direct cash settlement of share sales has been made compulsory for all investors effective September 2017.