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SEC set to release rules on electronic offering

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By Peter Egwuatu

The Securities and Exchange Commission, SEC has said it will soon unveil rules for  electronic offering of shares, stressing that it will help solve the problems of unclaimed dividend in the country.

The Acting Director General, SEC, Ms. Mary Uduk   revealed    this in an interview in Abuja, saying    the Commission is excited about electronic offering and is in full support hence the need to develop the rules to guide its implementation.

In a statement made available to Vanguard,    the SEC boss said : “We believe that electronic offerings will help solve the problems of unclaimed dividends. So it’s something we are backing seriously. Through electronic offerings we will not have the problems of identity as we had in previous listings.

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“It has a lot of advantages, it means that people who are not close by during an offering can invest, we are able to get the data we need for regulation, the offering is more efficient and it is cost saving. It is something we are working on; the rules will soon be out for everyone to use.”

The Acting DG said when it becomes operational,  an investor in Ghana or South Africa can invest in the Nigerian capital market via electronic offering.

“That is the idea but when the Exchanges finish putting it together that is what will happen. Ours is to make the rules and regulate, but that’s the idea. We want to open up our market so that more people can invest from different parts of the world.

We want a deeper, bigger, more attractive market. We think our economy is big enough to have a much bigger market. The capital market makes up less than 10 percent of the GDP of the country. If you look at other countries even South Africa, it’s over 100 percent of GDP. We believe we have a large room for expansion and that is what we are pursuing” Uduk stated.

Vanguard

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