How electronic offering will reduce unclaimed dividends –SEC

Web Editor | ConsumerConnect

In view of the importance of applying relevant technologies in enhancing productivity in the Nigerian Capital market operations, Ms. Mary Uduk, Acting Director-General, Securities and Exchange Commission (SEC), has said that the introduction of electronic offering in the market remains a major achievement that will help to solve the problems of unclaimed dividends.

Ms. Uduk, who stated this in Abuja, FCT, said SEC was excited about electronic offering, and is in full support; hence, the need to develop the rules to guide its implementation.

The Sun reports the Acting Director-General said, “We believe that electronic offerings will help solve the problems of unclaimed dividends; so it’s something we are backing seriously. Through electronic offerings, we will not have the problems of identity as we had in previous listings.

“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,”

When it becomes operational, she added, 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.

She said theirs 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 percent of the GDP of the country. If you look at other countries even South Africa, it’s over 100 percent of GDP.

“We believe we have a large room for expansion and that is what we are pursuing,” Uduk stated.