By John Okoh, Lagos
The Securities and Exchange Commission (SEC) has urged existing and prospective shareholders in the Nigerian capital market to embrace E-Annual reporting system. Director General of the apex regulator in the capital Mounir Gwarzo made the appeal during the post Capital Market Committee (CMC) briefing with the financial journalist in Lagos.
Gwarzo who used the opportunity to highlight the progress SEC has made since the first CMC in 2017, said the committee received reports from various sub-committees confirming the initiative to send companies annual reports to shareholders will help to reduce huge cost that quoted companies usually incurred in the process of producing and sending the accounts to shareholders.
He added that in most cases the annual reports usually gets to some shareholders after the Annual General Meeting (AGM) of their respective companies, stressing that annual e-reports to shareholders will enable them to make meaningful contributions at AGMs.
The Director General also hinted at the introduction of a Minimum Operating Standard (MOS) for all categories of market operators and Self-Regulatory Organizations (SROs) that have exchanges, Central Depository organizations alongside other operators in the capital market.
Other issues he addressed included the Central Bank of Nigeria (CBN) introduction of Dual Licenses Model (DLM), which will enable operators in the capital market to have access to CBN windows for funds that will aid their operations.
Concerning the database of operators in the market, Gwarzo said the market currently has a total of 421 market operators. On financial literacy, he explained that the committee is focusing on introducing capital market know-how to primary and secondary school students through radio, television, newspapers and Social Media platforms that has taken over the place of traditional media.
He concluded that the deadline on the e-dividend has been extended to December 31, 2017, urging shareholders to key into it because of its benefits
