By Micheal Eboh

The newly appointed Managing Director of the Central Securities Clearing System, CSCS, Limited, a subsidiary and clearing house of the Nigerian Stock Exchange, Mr. Kyari Bukar said that the central depository firm will continue with the dematerialisation progamme in the Nigerian capital market.

Dematerialisation is the process whereby shareholders’ physical share certificates are converted to electronic form, with the same number of units credited to the shareholders’ electronic account with the CSCS.

The NSE had in 2008, set December 31, 2008 as the deadline for the full dematerialisation of the capital market, directing shareholders to ensure that all their share certificates are dematerialized by that period.

However, this was overruled by the Securities and Exchange Commission, SEC, who later informed stakeholders that no deadline has been set for the conclusion or take off of the exercise.

SEC in a statement on the issue, informed stakeholders that share certificates remain a legal evidence of shareholding in public companies, adding, however, that dematerialisation of share certificates is in the overall interest of investors, encouraging them to embrace it as it will further enhance the efficiency and transparency of the market.

SEC further added that the dematerialisation exercise will be pursued to its logical conclusion while the interest of all investors will be adequately protected.

Speaking in Lagos, on assumption of office, Bukar, who is the immediate past Chief Executive Officer, Valucard Nigeria, said that dematerialisation is the norm in markets all over the world and the Nigerian market should not be left out in this laudable transformation.

He said, “In other parts of the world, there is usually no certificate issued in share trading activities, and the first time I saw that people were still making use of certificates was when I came to Nigeria. So, I plan to continue with the plans for paperless transactions which I believe would improve activities.

“In other markets, investors are able to trade on their shares the same day the shares are allotted to them, after a public offer, rights issues or through other means. This initiative should be introduced in Nigeria, due to the numerous advantages it presents.

“I am aware that one of the things that can drive investor confidence is when an investor buys shares and the transactions and processes are transparent for them. If we can achieve this, more people would be interested in investing in the market.”

Bukar assured stakeholders in the market that he will bring his experience over the years to bear in deploying world class and cutting edge technological innovation in the market.

He promised to partner with the NSE in bringing about transformative change and positive development in the Nigerian capital market.