By Peter Egwuatu
The Securities and Exchange Commission (SEC) has declared that the dominance of foreign investors is the bane of Nigeria’s stock market. The Director General, SEC, Mounir Gwarzo, who stated this said “Dominance of the market by foreign investor is one of the reasons why our market is the way it is. Although it is the pattern of the market, but this dominance is a major factor because they are the ones that come in and come out. We need to upscale the participation of the retail investors in the market and that is why we are addressing some of their concerns. Anyone you meet today and tell him to come back, the issue of unclaimed dividends is always a major problem.”
In order to achieve this, the DG stated that the commission has embarked on various initiatives like recapitalisation, e-dividend registration, the Direct Cash Settlement as a direct benefit to investors from the e-dividend registration as when they register for e-dividend, anytime their shares are sold, they would get the proceeds directly in their bank accounts among others.
According to him “ We are urging Nigerians to go and register to get their dividends electronically. Once we get through with the e-dividend thing, we will be able to deal with other issues in the market. The entire market has commenced Direct Cash Settlement. The era when shares will be sold and the proceeds will be given to the broker who will them pay the client is over. What is obtainable now is that once the shares of an individual are sold, the proceed is paid directly into his band account.