By PETER EGWUATU

The Securities and Exchange Commission (SEC), has disclosed that the processes associated with the use of physical certificate in the nation’s capital market would be concluded in December 2015. Mr. Mounir Gwarzo, Director-General of Securities and Exchange Commission, SEC confirmed to Vanguard that a committee charged to look into the issue of dematerialisation  has reached an advance stage in its report, adding  that by the end of this year,  the use of physical share certificate will come to an end.

Dematerialisation is the process of replacing paper certificates with electronic records at the Central Securities Clearing System (CSCS). According to Gwarzo, SEC is currently working with all stakeholders in the market to conclude the process this year. We have also commenced public enlightenment programme to reach out to all states of the federation to enable investors to comply with the process.

“The process is ongoing, we are doing a lot of public enlightenment to facilitate easy take off as we also advice investors to key into the process,” Gwarzo said. He disclosed that SEC had already instructed registrars to notify shareholders to choose a stockbroking firm  of their choice in readiness for full dematerialisation.

Gwarzo also said that with the process, shareholders forms already with the CSCS would be passed to the registrars, after which the registrars will notify the CSCS the broker’s choice of the investor. On the 10-year capital market master plan, Gwarzo said that the commission had already set up an advisory council that would review the report and make amendments where necessary.

“We have the list of advisory council and the CMC has given us the mandate to select 10 to 12 people and very soon, we will come out with the list. The t the committee’s work is  purely advisory and they are to interface with the judiciary and  National Assembly. The council will interface with the people working out the initiative and the master plan will be concluded this year,” the Director-General said.