Over the weekend, the Securities and Exchange Commission (SEC) assured foreign investors of the safety of their investments in the country’s capital market.
SEC’s Acting Director General, Ms Mary Uduk, gave the assurance while welcoming some representatives of JP Morgan and Stanbic IBTC who visited the commission’s headquarters in Abuja.
Speaking during the meeting, the SEC boss stated that all the necessary measures and initiatives have been taken in order to secure investors’ wealth and ensure that they derive the right benefits due them. She further stated that the Nigerian capital market is dynamic, fair, free and transparent.
Measures taken by SEC towards the advancement of the capital market
One of such measures taken by SEC towards the advancement of the Nigerian capital market is the successful implementation of the Capital Market Master Plan.
The Securities and Exchange Commission has also dematerialised share certificates, recapitalised market operators, established the National Investors’ Protection Fund and launched the corporate governance scorecard.
Uduk further listed other implemented initiatives to include the implementation of the e-Dividend Mandate System, the reduction of transaction cost, implementation of direct cash settlement, the establishment of a compliant management framework, as well as the introduction of non-interest capital market products.
Most importantly, the Securities and Exchange Commission has also established regulations that will protect investors and sanction infractions, ThisDay reported. More so, Ms Uduk also stated that the Commission put in place surveillance mechanisms that will forestall possible shady tradings and any other forms of market manipulations that could pose threat to investors.
“SEC champions zero tolerance on infractions and we have a range of sanctions depending on the level of infraction and how egregious the breach is, ranging from warnings, fines, suspensions, withdrawal of registrations and jail terms. The idea is to improve transparency in the market and ensure that investors are safe.
“The implementation of this regime has led to the closure of various Ponzi schemes as well as the recovery of millions of naira belonging to innocent investors.” – Uduk
JP Morgan praises SEC’s efforts in the capital market
Meanwhile, JP Morgan also used the occasion to praise the performance of the Nigerian Capital Market. Speaking during the meeting in Abuja, a representative of the global financial institution, Nick Long, said the positive performance by Nigeria’s capital market is the reason why more foreign investors continue to invest in Nigeria.
The Securities and Exchange Commission is the apex regulator of Nigeria’s capital market. It is supervised by the Federal Ministry of Finance.