The Director General of Securities and Exchange Commission, SEC, Mr. Lamido Yuguda, on Friday disclosed that the value of unclaimed dividends in the Capital Market has risen to N170 billion. He made the statement at a virtual post Capital Market Committee, CMC, meeting tha.t
Mr. Yuguda noted that the value has grown from the N158 billion which it was in 2018. He blamed the growth on the introduction of the Bank Verification Number, BVN, which sought to link actual names to bank accounts.
He explained investors had in the past bought company shares with false names which has now made it difficult for them to claim their dividends using their real names.
He said: “The truth of the matter is that we have problem of identity management in the Nigerian Capital market and this is one of the things the commission has been trying to resolve. We have set up a high-powered committee to look at this.
“There are people who have bought shares under false names before. That is what we call the multi-subscription problem. The thing is yes there is a problem with the process and also there a problem with us as a people.
“If you are buying securities using your own wealth why would use another person’s name? Why would you use a name that may not be traceable to you? And most of these things really became an issue after the introduction of BVN, because BVN is tied only to one name.
“So should you have any other name than you are using before, those accounts cannot be accepted by your bankers”, he added.
SEC also expressed worry over the amount of monies lost by Nigerians to Ponzi scheme operators, warning Nigerians to stay away from any scheme that promises unusual return on investment.
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Yuguda pointed out that “many of these Ponzi operators once they give these mouth watering promises they entice so many gullible investors and in the end monies are actually lost and these investors actually flock to our offices to complain but they should actually just check our website, two minutes is enough, to ascertain whether this investment fund is actually registered with the commission”.
On the outcome of the CMC meeting, he said: “We observed some level of improvement in the economy coming from the recovery in crude oil prices, a slow but downward trend in inflation rate, a moderate but positive economic growth in Q1’2021, with a higher growth expectation for Q2’2021, while efforts are ongoing to ensure a stable exchange rate in the country. Market performance has therefore been mixed, driven largely by these domestic and global economic factors, the impact and responses to the pandemic and the regulatory environment.
“In line with our mandate, the Commission has been working on some initiatives that we believe would put the market on the path to recovery.
“The Commission recently issued a circular to the public on the commencement of its Regulatory incubation process. I am glad to inform you that the Commission has registered two Fintech Capital Market Operators, which include a Digital Fund Portfolio Manager and a Digital Sub-broker. We look forward to registering more Fintech players in our market”.
