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Recapitalisation: SEC Extends Deadline For CMOs

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Deadline for the recapitalisation by Capital Market Operators (CMOs) in Nigeria has been extended by the Securities and Exchange Commission (SEC).

SEC said also that it has given more time for the free registration of e-Dividend Mandate Management System (e-DMMS) exercise for investors till December 31, 2016.

However, the agency has directed registrars in the country’s capital market to discontinue the issuance of dividend warrants to investors with effect from June 30, 2017.

This, it explained, is to reduce the incidences of unclaimed dividend in the market.

According to SEC Director General, Mr Mounir Gwarzo, “We will no longer extend the deadline for the recapitalisation of capital marker operators as they have been given enough time.”

He warned that, “Any operator who does not meet the deadline would be sanctioned as their licenses would be revoked and be suspended from the market.”

Mr Gwarzo, speaking at the post Capital Market Committee, Meeting with newsmen in Lagos, said any operator who has his licensed revoked would have to re-register and go through the gamut of registration exercise.

The SEC boss lamented that not much people have registered on the free e-DMMS exercise provided by the commission to encourage more investors and protect their investment in the market.

“Only 6000 Nigerians have so far registered for e-dividend, which will allow their dividends to be credited directly into their chosen bank accounts, almost one year after the SEC commenced the campaign with the launch of e-dividend mandate,” he said.

“We have now extended the free e-DMMs exercise from September to December 31, 2016. The commission will bear the cost of processing the e-dividend up to December 2016. No bank or registrar is to collect any fee in this regard from investor,” he declared.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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