Key highlights
- SEC gave assurance to protect investors in Abuja Thursday while briefing journalists on the outcome of the first quarter Capital Market Committee meeting, (CMC).
- This follows the decision of Oando Plc to delist from the Nigerian Exchange Limited, NGX, and the crises rocking the management of Seplat Energy Plc.
- Yuguda also noted that the Commission was working at ensuring that foreign and retail investors were retained and more attracted to the capital market.
The Securities and Exchange Commission, SEC, has assured investors that the interest of minority shareholders would be protected during all transactions in the capital market.
The Director General, of SEC, Mr. Lamido Yuguda gave the assurance in Abuja Thursday while briefing journalists on the outcome of the first quarter Capital Market Committee meeting, (CMC) in a virtual meeting.
This follows the decision of Oando Plc to delist from the Nigerian Exchange Limited, NGX, and the crises rocking the management of Seplat Energy Plc.
The interest of shareholders
He noted that protecting the interests of both majority and minority shareholders was the primary responsibility of the Commission.
- “Protection of investors is the central mandate of the Commission and when the Commission protects investors, we do not discriminate between minority and majority shareholders.
- “When there is a case of delisting, the application for the delisting cones to the Commission and we go through it very carefully to ensure that the shares of the company being delisted are fairly valued because fair valuation is what protects all the shareholders”, he explained.
On the crises in Seplat, Yuguda said the Commission has made a public statement on the issue.
- “We have examined the issue surrounding Seplat and have come to the conclusion that it has not affected the production activities of the company. The issues surrounding the board members and we ask them to pay attention to resolving them. We are satisfied that Seplat is working to ensure all issues are resolved. We will continue to engage them to ensure that shareholders are protected,” he said
Foreign/retail investors
Yuguda also noted that the Commission was working at ensuring that foreign and retail investors were retained and more attracted to the capital market, observing that relative to other markets on the continent, the NGX has performed very well.
Investors and Securities Bill
He expressed optimism that President Muhammadu Buhari will sign the Investors and Securities Bill, ISB, into law before leaving office in May, noting that the new law was long overdue.
- ‘’The meeting was officially informed about the passage of the Investments and Securities Bill (ISB) 2023 by the Senate. Some of the provisions in the ISB include stiffer punishment for operators of Ponzi schemes, expansion of the categories of issuers of securities, and better coverage of some new products among others.
- “The ISB also has provisions for regulation of commodities exchanges and other operators in the commodities trading ecosystem”, he added.
What you should know
The CMC is an industry-wide committee comprising members of the SEC, representatives of capital market operators and trade groups, and other stakeholders. It was primarily established to serve as a medium for the exchange of ideas among market stakeholders as well as an avenue for providing feedback to the SEC on how to continuously address challenges, improve market operations and enhance the regulatory framework.
