The acting Director-General of Securities and Exchange Commission (SEC), Mary Uduk, has reacted to the handling of the sovereign yields by the Central Bank of Nigeria (CBN) and the impact it had on the equity market.
Uduk commended the CBN for preventing the crowding out of corporate from the debt market by allowing funds flow to the equity market after reducing sovereign yields. This means the CBN was able to prevent a situation where investments by businesses in goods and services were not reduced by a rise in government spending, which usually results in deficit financing, draining the available capital, thereby, causing interest rates to rise.
“Their actions in the area of foreign exchange management, and how they respond to rising inflation will play a huge role in determining market performance. However, we have confidence in their ability to do what is best for the economy.
“Having said all these, the SEC will continue to do its bit to ensure our market continues to grow. We will keep engaging eligible companies to list, government to ensure that government assets are sold through the market, and removal of the disincentives to investing in the Nigerian capital market
“The Commission remains committed to its core mandate of protecting investors and assures the general public that it shall perform this function in line with extant securities legislation,” Head, Office of the Chief Economist, ⁰Okechukwu Umeano said on behalf of Uduk in a Punch report.
SEC intensifying effort against ponzi: Uduk reiterated the commitment of SEC in curbing illegal investment in the capital market, stating that the regulator was cracking down on the operation of illegal fund managers.
“The commission continues to create awareness through various media to educate investors about these schemes and urge people to avoid putting money into them. It is an ill wind that blows no one any good.
“The SEC has introduced a lot of innovative processes to clean up the market and make it easier and safer for investors. Some of these measures and processes include the e-dividend and Direct Cash Settlement and regularisation of multiple accounts among others.
“Other activities of the SEC such as Risk-Based Supervision, encouraging automation, strengthening self-regulatory organisations are all geared towards a better market and in turn improved investor confidence,” Uduk said.
Do your due diligence: She suggested that prospective investors should conduct enquiries about any fund manager before investing in them.
“We advise prospective investors to cross-check properly before patronising any fund manager. Information about registered entities and investment schemes approved by the commission can be found on the commission’s website or at any of the commission’s offices.”