TheNewsGuru

Tag: SEC

  • Airtel CEO identify conditions for telcos to list on NSE

    Airtel CEO identify conditions for telcos to list on NSE

    Managing Director and Chief Executive Officer of Airtel Nigeria, Mr. Segun Ogunsanya, has stressed that telecom firms in Nigeria can successfully list on the Nigerian Stock Exchange and contribute significantly to the socio-economic development of the country, barring challenges confronting operators in the sector.

    According to him, an enabling business environment, policies that promote ease of doing business and market forces in line with best practices are key factors that can encourage telcos to list on the Nigerian Stock Exchange.

    Mr. Ogunsanya made this submission while delivering his presentation entitled “Creating an Enabling Environment for Public Listing of the Economy’s Commanding Heights: The Case for Telecoms Sector“ at the 2017 Chartered Institute of Stockbrokers (CIS) Annual National Workshop held in Abuja on Tuesday, July 4, 2017.

    Speaking at the occasion, Mr. Ogunsanya noted that following the liberalisation of the telecoms sector in 2001, the nation has benefitted in terms of employment creation, attraction of foreign direct investments and social-economic development.

    He said: “The sector currently accounts for 10 percent of the nation’s Gross Domestic Product (GDP) and therefore makes it a critical national infrastructure. In addition, connectivity among Nigerians has been enhanced with the 145,350,702 active lines as at May 2017, investments in the sector as at Q1 2017 stood at $68billion with FDI contribution amounting to $35billion, while over 10,000 direct jobs and 1.3million indirect jobs have been created.”

    He stressed that telcos are committed to providing qualitative world class telecommunications services and in turn contribute to the socio-economic development of the country. However, operators are still facing challenges which stifle growth and inhibit services delivery.

    Mr. Ogunsanya, therefore, urged government to address lingering industry issues such as multiple taxation, prohibitive right-of-way fees, broadband spectrum pricing/ availability among others.

    Speaking further, the Airtel CEO noted that high interest rates are a major draw-back on use of debt financing, the fluctuation of foreign exchange rate has adversely impacted use of debt financing, while adverse market conditions occasioned by recession have adversely impacted viability of public equity alternatives.

    The CIS Annual Workshop themed “Transition from Recession to Global Economic Power: A Working Template for Nigeria” was a convergence of stakeholders in the nation’s financial services sector.

    Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema; Director General, Securities and Exchange Commission (SEC), Mallam Mounir Gwarzo, Minister of Finance, Hon. Kemi Adeosun were among top government functionaries, captains of industry and dignitaries that attended the event.

    The workshop was organised in conjunction with the Nigerian Capital Market Institute, a training affiliate of the Securities and Exchange Commission (SEC), the apex regulator of the Nigerian Capital Market.

     

  • SEC extends deadline for issuance of dividend warrants to Dec. 31

    SEC extends deadline for issuance of dividend warrants to Dec. 31

    The Securities and Exchange Commission (SEC) has extended the deadline for stoppage of issuance of physical dividend warrants in the nation’s capital market to Dec. 31, 2017.

    Mr Naif Abdussalam, SEC Head, Corporate Communications disclosed this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.

    Abdussalam said that the deadline was extended to give room for investors to key into the e-dividend payment platform.

    He told NAN that the extension became necessary to perfect the commission’s rules on issuance of dividend warrants that was exposed to the public a week ago.

    Abdussalam stated that the commission’s issuance of dividend warrants would be a thing of the past by Dec. 31, 2017, with the amendment of the rules and keying into the e-dividend payment platform by more investors.

    NAN reports that SEC had in 2016 announced June 30, 2017, as deadline for issuance of physical dividend warrants to shareholders by quoted companies to tackle unclaimed dividends and mitigate the risks associated with warrants.

    He also said that SEC had extended the underwriting cost of investors e-dividend registration to Dec. 31, 2017, from against the earlier underwriting deadline of June 30, 2017.

    Abdussalam said that the deadline was also extended to give room for enrolment of more investors in the e-dividend payment platform.

    “E- dividend simply refers to an online system of paying dividends to investors when companies declare dividends, which are the profits meant for investors, rather than send it by post, they will just wire it to the investor’s bank account.’’

    He stated that the commission’s decision to continue to underwrite the cost till Dec. 31, was part of its developmental role to curb the menace of unclaimed dividend.

    The commission’s spokesman said that the e-dividend would strengthen the KYC of all investors in the capital market to curb unclaimed dividend and stoppage of unauthorised sale of shares in the market.

    Abdussalam added that loss of dividends would be a thing of the past with the e-dividend payment platform.

    He said that the commission would continue to leverage on the BVN initiative of the Central Bank of Nigeria (CBN) to boost investors’ confidence in the nation’s capital market.

    NAN reports that Mr Mounir Gwarzo, SEC Director-General at the Capital Market Committee meeting in May said that 2.2 million investors had mandated their accounts for the e-dividend payment policy as of April 30, 2017.

    He stated that the commission would urge all listed companies to participate in the on-going enlightenment campaign on e-dividend by informing their shareholders at Annual General Meetings (AGM) on the processes put in place to increase the figure.

    Gwarzo explained that the e-dividend form could be obtained and properly filled at bank branches or in the office of a registrar and stock broking firms, or could be downloaded and filled by individuals.

    He added that the major aim of the e-dividend payment system was to curb unclaimed dividends in the market, noting tha unclaimed dividend figure was reducing due to the e-dividend.

    NAN also reports that major shareholder groups in the capital market had been calling for the extension of the deadline to allow more investors to embrace the initiative.

     

    NAN

  • Update your data by July 31 or be de-registered, SEC warns erring companies, professionals

    Update your data by July 31 or be de-registered, SEC warns erring companies, professionals

    The Securities and Exchange Commission (SEC) has threatened to revoke the registration of about 400 capital market experts and professionals if they failed to comply with the directive to provide updated information of their companies by July 31, 2017.

    This was made known in a circular issued by the commission monday in Abuja.

    According to SEC, any firm whose response was not received within the time frame would be considered inactive and it would exercise its power to revoke its registration.

    SEC said pursuant to the powers conferred on it by the Investments and Securities Act (ISA) 2007, it had directed all capital market experts or professionals to provide updated information of their companies/firms in December 2016 and February 2017.

    The commission observed that a large number of capital market experts or professionals comprising; Reporting Accountants, Solicitors, and Estate Surveyors/Valuers, among others did not respond to the request.

    The circular reads: “The concerned firms are by the circular required to indicate their interest in retaining their registration with SEC as capital market experts or professionals by providing updated information on their firms.

    “They are also reminded that the minimum number of Sponsored Individuals required for their registered function is three, including a Compliance Officer.

    “The concerned capital market experts or professionals are enjoined to visit any of the commission’s offices in Abuja, Lagos, Port Harcourt and Kano for further clarification:

    “All concerned capital market experts are required to comply with this directive on or before July 31, 2017 as any firm whose response is not received within this time frame would be considered inactive and the SEC would exercise its power to revoke its registration.”

  • SEC restates commitment to development of commodity exchanges

    The Director-General, Securities and Exchange Commission, SEC, Mr Mounir Gwarzo, has restated the commission’s resolve to promote the development of Commodity Exchanges in the country.

    Gwarzo said this in a statement issued by Mr Naif Abdulsalam, the Director, Corporate Communication of SEC on Wednesday in Abuja.

    He said this when he received the New Exco of the Association of Stock broking Houses of Nigeria (ASHON) at the commission.

    According to him, the commission is willing to support the Lagos Commodities & Futures Exchange being midwife by ASHON.

    On the suspension of some of their members by the NSE & SEC, the director-general urged ASHON to give the companies three months grace period to recapitalise before anything could be done.

    “This aligns with their argument that stock brokers carry equities in their balance sheet and prices of equities have gone down thus affecting their capital,’’ he said.

    TheNewsGuru.com reports that ASHON members were suspended on account of their deficiency in Minimum Operating Standard (MOS) compliance as well as diminution in value of minimum capital requirement.

    Responding, ASHON through its Chairman, Patrick Ezeagu solicited for the possibility of increasing the grace period to six months to recapitalise or reclassify.

    Ezeagu also noted with concern the proposed amendment of Rule 56(1) – Function of Brokers(Harmonisation of Registration requirement for incidental functions).

    He said the development would preclude brokers from providing Investment advice to their clients/Public. While acknowledging not knowing the thinking behind the proposed amendment, Ezeagu solicited for the reconsideration of the proposal.

    His call was based on the backdrop of the “so called’’ value addition provided by brokers/dealers in providing investment advice to their clients.

    He argued that a lot of stock broking houses had well established research desks, which helped to broadcast market information on a continuous basis.

    He said the group also carried out in-depth analysis and provide opinions on complex financial issues to their clients.

    He expressed their dismay on the Federal Government’s sole reliance and emphasis on monetary policy for macroeconomic management to the detriment of the capital market.

    He said the association accepted to look at the Investment and Securities Tribunal funding proposal being championed by SEC and NSE.

     

    NAN

  • SEC, EFCC collaborate to enhance capital market operations

    The Securities and Exchange Commission, SEC said it is collaborating with the Economic and Financial Crimes Commission, EFCC to enhance capital market operations in the country.

    the Director General of the Commission, Mr Mounir Gwarzo, said this in an interview with newsmen in Abuja.

    “This is a major game changer; in the past, SEC has had collaboration with EFCC in terms of sending some of our staff to work with them.

    “But what has happened at that time largely is that EFCC has leveraged on our experience and the competence of our people to also assist them in their work.

    “So we also felt there is a need to push that collaboration to a higher level.

    “So some of the salient issues in the MoU is, one, we should be able to have an exchange of staff; EFCC should be able to send some of their staff that they have trained them into Investigation.

    ”So we will share ideas to help in investigation and we should be able to send some of our staff to EFCC so that we will be able to share with them some of the intricacies of the capital market.

    ”Investigation in the financial industry is quite unique.

    ”We also agreed that we should be able to create dedicated desks both at EFCC and SEC such that we know that the desk is dedicated to the capital market issues,’’ he said.

    Gwarzo said that most importantly, the SEC going by its law, SEC did not have the power to prosecute criminal matters.

    He said the law limited SEC to only civil cases whereas about 99 per cent of cases in the capital market had some criminal elements.

    He said, “the best we normally do is after our investigation, we ban or suspend the operator as an individual, we also either suspend or revoke the licence of the operator as a company.

    “We then pass the matter to the EFCC, because the issue is related to the criminal aspect, we do not have jurisdiction to do that.

    “So with this collaboration, we will be able to work closely with EFCC to ensure that the criminal elements which concerns the investor is also pursued and prosecuted to its logical conclusion.

    “With this MoU we have had, I’m sure our investigation and particularly our enforcement mechanism, would been hanced.

    He explained that SEC had been handling civil cases and ”we had achieved a lot of progress but with the EFCC coming in, they would be able to also handle criminal matters.

    TheNewsGuru.Com reports that the EFCC boss had pledged commitment to ensure that the hallmark of the collaboration was achieved.

    He further said,“ for me, it is a major game changer in our enforcement drive and this will also send a very strong signal to any capital market operator that will commit an offence.

    Gwarzo said the collaboration would deter further offenders in the capital market.

  • Don’t invest in Bitcoin, Onecoin, others, SEC warns Nigerians

     

    The Securities and Exchange Commission, SEC on Thursday warned Nigerians who maybe considering responding to radio advertisements and other modes of solicitations for investments in crypto currencies such as Swisscoin, OneCoin, Bitcoin and such other virtual or digital currencies, to rescind their decisions as potential investors stand the chance of losing their monies.

    This warning was in consonance with similar warnings issued by capital market regulators and central banks across the world over the past few years, the regulator said in a post on its website.

    Warning the public, the commission, thus, stressed that none of the persons, companies or entities promoting crypto currencies had been recognised or authorised by it or by other regulatory agencies in Nigeria to receive deposits from the public or to provide any investment or other financial services in or from Nigeria.

    “The public should also be aware that any investment opportunities promoted by these persons, companies or entities are likely to be of a risky nature with a high risk of loss of money, while others may be outright fraudulent pyramid schemes,” the regulator noted.

    It stated further: “Given that these instruments and the persons, companies or entities that promote them have neither been authorised, nor any guidelines/regulations developed for them by any of the regulatory authorities in Nigeria, there is no protection available to users or investors in these virtual currencies from financial losses if the virtual currencies fail or the companies promoting them go out of business.

    “The public and consumers of financial services are further advised that before making any investment or entering into any financial services transaction they should ascertain that the entity with whom the investment or transaction is being made is authorised by the commission or other financial services regulatory authority as applicable to provide such services.”

    Recall that SEC had in August last year, raised the alarm over the activities of some online fraudsters, who operated an online investment scheme tagged ‘MMM Federal Republic of Nigeria.’

    The fraudsters, SEC said then, carried out their illegitimate business via Nigeria.mmm.net portal/platform, and were promising investors a monthly investment return of 30 per cent.

    It warned that the venture had no tangible business model, describing it as a Ponzi scheme, where returns would be paid from other people’s invested funds.

    SEC however categorically warned that: “Please note that anyone that subscribes to this illegal activity does so at their own risk.”

  • Web giant, Yahoo Inc. goes into extinction

    Early web giant, Yahoo Inc., is following the path of AOL into extinction as Verizon Communications Inc. has confirmed concluded plans to acquire the once-loved-by-all tech firm for $4.8 billion in July, in an acquisition that will see the firm’s name changed to Altaba.

    Yahoo confirmed the development on Monday saying it will whittle down its board after completing its deal with Verizon, with several longtime directors, including Chief Executive Marissa Mayer and co-founder David Filo stepping down as directors.

    In a Securities and Exchange Commission (SEC) filing, Yahoo said, “In light of the fact that following the Closing the Company will operate as an investment company under the Investment Company Act of 1940, the Board has determined that, immediately following the Closing, the size of the Board will be reduced to five (5) directors.

    “Tor Braham, Eric Brandt, Catherine Friedman, Thomas McInerney and Jeffrey Smith will continue to serve as directors of the Company following the Closing, and Mr Brandt will serve as Chairman of the Board.

    “Each of David Filo, Eddy Hartenstein, Richard Hill, Marissa Mayer, Jane Shaw and Maynard Webb has indicated that he or she intends to resign from the Board effective upon the Closing, and that his or her intention to resign is not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices”.

    Yahoo will change its name to Altaba after it turns over its email, websites, mobile apps and advertising tools to Verizon. The new name is meant to reflect Yahoo’s transformation into a holding company for investments in China’s e-commerce leader Alibaba Group and Yahoo Japan that are worth about more than 40 billion dollars in total.