‘How innovative process, products will deepen Nigeria’s capital market’

The Securities and Exchange Commission has highlighted how new processes and products will deepen the capital market.

Speaking during a visit by students of Aduvie Pre-University College; Modibbo Adama University, Yola; and the University of Abuja to the Commission during the week, the Acting Director-General, Ms Mary Uduk, noted that beyond the conventional capital market products of equities and bonds, as well as manual regulatory processes, players and regulators of the Nigerian capital market were introducing new processes.

According to Uduk, capital markets across the world have products and mechanisms to stimulate economic growth, adding that though many of such products are available in Nigeria, there are aspects that are still untapped.

Some of the processes of the SEC that were manual and inefficient are now being automated to make the market more attractive to investors, she asserted.

She said, “For instance, with the dematerialisation process completed, investors no longer need to worry about loss or damage to their physical share certificates,as they are now electronically stored.

“Further, the e-dividend system enables shareholders’ dividends to be paid directly into their bank accounts, without the stress of dealing with physical dividend warrant.”

She also cited the Direct Cash Settlement, which protects investors from funds mismanagement by ensuring that the proceeds of the sales of their shares are credited directly into their own account as against that of the stockbroker.

“We are equally working on ensuring that companies’ annual reports are distributed electronically, thereby ensuring timeliness of information to shareholders and cost reduction to public companies,” she stated.

The Acting DG told the students that through the Commodities Trading Implementation Committee, the Commission had engaged the Standards Organisation of Nigeria to publicise the relevant standards issued for agricultural products, while warehouses had also been mapped to provide information on its availability and location.

In his remarks, Head, Faculty of Social Sciences, Aduvie Pre-University College, Mr Sixtus Onyekwere, said the college was making a difference in the lives of the students.

According to him, to be rich in life, one needs to start a business, invest in financial markets and learn how money works.

“To get this education, you need to leave your school environment once in a while to visit places like the Securities and Exchange Commission, learn about its operations, get advice from accomplished entrepreneurs and interact with the real money-makers. This will teach you how money works and how you can take advantage of the opportunities around you,” he said.

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