SEC extends forbearance window to encourage listing by multinationals

The Securities and Exchange Commission (SEC) has announced September, 2018 as the new extended date of the forbearance window for investors with multiple accounts and subscriptions.

Acting Director-General SEC, Ms Mary Uduk stated this at the first 2018 post-Capital Market Committee (CMC) recently held in Lagos.

The forbearance is to enable those who bought shares in multiple names to consolidate such multiple shareholders’ identities with the registrars and Central Securities Clearing System (CSCS) into one that bear their official names.

In a statement made available to The Guardian, the Acting SEC boss, noted that during the market boom, some investors bought shares with different names which they had forgotten hence could no longer access the benefits of such investments.

She called on the affected investors to take advantage of the forbearance window to ratify their accounts.

Uduk also expressed commitment to ensure listing of multinationals adding that de-listing by quoted companies posed a threat to the growth of the capital market.

“Increase in de-listing by public companies pose a threat to the market in view of the fact that quite a number of them are highly capitalised,” she said.

Uduk said that the commission mandated the committee to come up with strategies aimed at tackling de-listing and boosting listing of more multinationals.

She said that some highly capitalised companies had delisted, thereby, affecting the growth of the market.

According to her, the committee will meet with stakeholders and find out why they are delisting as well as discuss with eligible ones why they are not listed.
Uduk said that some companies had complained of tax issues, and gave the assurance that the commission would engage the government to address the issue.

She said that the committee would come up with recommendations.

“If they are regulatory issues – more rule amendment – we are open to it, but our rules must be in line with international best practices,” Uduk said.

She gave the assurance that the apex capital market regulator would work in line with the committee’s recommendations.

The Acting DG also said that the commission was collaborating with the Corporate Affairs Commission to obtain the list of companies not quoted on any of the exchanges in the country.

On issuance of electronic annual accounts,  she said that the pilot scheme had begun adding that the commission had received feedbacks of concerns from various shareholder associations on the electronic annual reports.