October 28, 2021

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SEC Consolidates 45,733 Multiple Accounts, 4.82bn Shares

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Dr. Lamido A. Yuguda, Director General/CEO, Securities And Exchange Commission.

The Securities and Exchange Commission (SEC) says it has consolidated a total of 45,733 multiple accounts involving 4.82 billion shares under its multiple subscription window introduced since 2017, to eliminate unclaimed dividends in the nation’s capital market.

Mr Alhassan Suleiman a Deputy Director, who is also the chairman, Multiple Subscription, said that, “based on reports submitted by registrars and stockbrokers, from inception to the second quarter of 2020, a total of 45,733 multiple accounts have so far been consolidated involving 4.823 billion units of shares”.

Suleiman said that efforts were still ongoing to ensure that more investors would embrace the window to regularize and consolidate their portfolios. He noted that the fear of investors being sanctioned had been addressed by the commission.

He added the commission was engaging relevant agencies and organizations to simplify the process of identification not only for resolving multiple subscriptions but for all processes with the market.

“We worked closely with the Nigeria Inter-Bank Settlement System Plc. on the e-Dividend Management System, and we will continue to engage them,” he said

Suleiman said that SEC had prioritized enhancement of the investor’s experience in the capital market, adding that identity management was critical to achieving it.

He said that Capital Market Operators (CMOs) had been given October 2020 deadline to update ‘Know Your Customer (KYC)’ information of their clients to tackle identity issues.

Multiple subscriptions to public offers occurred during the boom period in the capital market when, investors used different names to purchase shares to enable them to buy more than permitted units of shares. It was that deed that caused identity issue which it’s regularization started in 2017.

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