*New rules on transaction cost analysis coming
As parts of its efforts towards attracting youths to invest in the Nigerian capital market, the Securities and Exchange Commission (SEC) has partnered with the Nigerian Educational Research and Development Council (NERDC) to develop a curriculum on capital market studies to be taught in primary and secondary schools.
According to the Director General (DG) of SEC, Mr Mounir Gwarzo a committee is already in place, preparing the curriculum and content, while the commission has a budget in place for the financial literacy initiative.
NEW RULES ON TRANSACTION COST ANALYSIS
Meanwhile, SEC revealed that it had successfully formulated rules on transaction cost analysis, which is awaiting the approval of the Honourable Minister of Finance.
A statement from its 2nd quarter Capital Market Committee (CMC) Meeting on August 15, 2017 in Lagos,noted that an update of the Capital Market Operators (CMOs) Data Base had been completed and that the commission has adopted a policy to grant exemption from the Commission’s registration process to Principal Officers of Trade-groups who are already registered sponsored individuals.
Although the statement explained that the development of a uniform platform for subscribing to the E-Dividend Mandate Management System and the Direct Cash Settlement System, was still a work in progress, it noted there were ongoing discussions with the Central Bank of Nigeria on achieving the Dual Licensing Model.
In his address at the event, which was attended by Self-Regulatory Organizations (SROs)/Trade Groups and an array of Dignitaries, the DG SEC expressed delight at the recent positive vibes from the capital market and anticipates sustained growth as the economic fundamentals of the country continue to stabilize.
Gwarzo, while directing the E-Dividend Committee to address the lingering issues surrounding electronic payment of dividends, stressed the need for all Capital Market Operators (CMOs) to professionally advise investors on equity investments in order not to repeat the mistake of the past.
During the meeting, the Market-wide Infrastructure Technology Committee headed by Mr. Ade Bajomo was also dissolved following the conclusion of their task, with the intent to constitute another committee to implement the recommendations of the Ade Bajomo led committee.
Participants at the CMC meeting agreed on a Budget for the 2017 financial literacy campaign along with financial demands expected of all market participants and concluded to conduct a clinic for all company secretaries and members of shareholders associations to emphasize the need for all public companies to have their securities registered with the Commission.
Upon conclusion of the event, members remained optimistic about a further improvement in the market given the prevailing market indicators.
As proof of this optimism, the Chief Executive Officer of the Nigerian Stock Exchange informed the gathering that the primary market could witness some level of activity in the nearest future, while the FMDQ announced its intention to launch a Single Settlement Bank sometime in October 2017.
The meeting ended with a discussion on certain tax legislative restraints on capital market transactions, which was agreed to be deliberated upon at the forthcoming CAMMIC meeting.