The Securities and Exchange Commission (SEC) on Tuesday August 16, 2017, urged existing and prospective shareholders in the Nigerian capital market to embrace E-Annual reporting system. Director General of the apex regulator in the capital Mounir Gwarzo made the appeal during the post Capital Market Committee (CMC) briefing with the financial journalist in Lagos.
Gwarzo who used the opportunity to highlight progress made so far since the first CMC in 2017, said the committee received reports from various sub-committees, saying that the initiative to send companies annual reports to shareholders will help to reduce huge cost that quoted companies usually incurred in the process of producing and sending the accounts to shareholders.
He added that in most cases the annual reports usually gets to some shareholders after the Annual General Meeting (AGM) of their respective companies. Stressing that, sending annual reports electronically will enable shareholders to have access to their company’s annual report on time and be able to make meaningful contributions at AGMs.
In the same vein, the director general also hinted that they are going to introduce a Minimum Operating Standard (MOS) for all categories of market operators. He explained that it will be implemented for all the Self-Regulatory Organizations (SROs) that have exchanges, Central Depository organizations alongside other operators in the capital market.
Other issues that he talked about is the discussion with the Central Bank of Nigeria (CBN) on the introduction of Dual Licenses Model (DLM), which will enable operators in the capital market to have access to CBN windows for funds that will aid their operations. He said they are still in discussion with CBN on how to address some areas of concerns, pointing out that CBN is very interested in the initiative.
Concerning the data base of operators in the market, Gwarzo said that currently the market has a total of 421 market operators. On financial literacy, he explained that the committee is focusing on the primary and secondary school in order to inculcate basic understanding of the capital market on the younger generation.
Adding that a budget has been approved by the committee, which will involves taking messages across the country through radio, television, newspapers and most importantly the new media (Social Media) that has taken over the place of traditional media. He concluded that the deadline on the e-dividend has been extended to December 31, 2017, urging shareholders to key into it because of its benefits.