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Share certificates delay: SEC rolls out sanction for erring companies
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Securities and Exchange Commission (SEC) over the weekend took some far reaching decisions to further protect the investing public and guarantee greater confidence in the Nigerian capital market.
Apart from suspension in trading in shares of companies that unnecessarily delay issuance of certificates on public offers and return/surplus monies therein, the Commission has also ruled out preferential allotment of shares on public offers while it directed that registrars can no longer maintain register of their related companies with effect from April 1, 2008.
In a move to prevent further delay in issuance of share certificates on public offers, SEC warned over the weekend, that, any public company found to have violated its rules and regulations relating to the dispatch of share certificates and return/surplus monies will have its listed securities suspended indefinitely from trading on the floor of the Nigerian Stock Exchange (NSE).
Mohammed Ville, head of corporate affairs of the commission in a statement said: “All such defaulting companies, according to the apex regulator of the Nigerian capital market, shall not be allowed to access the Nigerian capital market until all outstanding complaint against them are cleared to the satisfaction of the Commission”.
The Commission also warned through a public notice released at the weekend, that henceforth it shall no longer entertain any application for preferential allotment.
Investors have in recent times been complaining about the delay in receipt of share certificates on public offers, a development that has put registrars on the hot seat. The Commission has on its part rolled out strong warning against delay in issuance of share certificates and embark on on-the-spot check on registrars.
In a move to prevent conflict of interest on the part of registrars, the Commission declared in the public notice that with effect from April 1, 2008, no registrar shall be allowed to administer the register of any public company to which it is a subsidiary, a holding company, a related company or which has substantial shareholding in the said registrar, or in which the said registrar has substantial shareholding.
The Commission also warned that any violation of its directive shall attract sever sanctions including outright withdrawal of registration to operate in the Nigerian capital market.
The commission advised all investors in the market who have not received their share certificates and return/surplus monies in respect of all public offers that closed on or before October 31, 2007 to forward their complaints in writing to its Director-General through any of its offices in Abuja (head-office), Lagos, Port-Harcourt and Kano.
In a move to prevent further delay in issuance of share certificates on public offers, SEC warned over the weekend, that, any public company found to have violated its rules and regulations relating to the dispatch of share certificates and return/surplus monies will have its listed securities suspended indefinitely from trading on the floor of the Nigerian Stock Exchange (NSE).
Mohammed Ville, head of corporate affairs of the commission in a statement said: “All such defaulting companies, according to the apex regulator of the Nigerian capital market, shall not be allowed to access the Nigerian capital market until all outstanding complaint against them are cleared to the satisfaction of the Commission”.
The Commission also warned through a public notice released at the weekend, that henceforth it shall no longer entertain any application for preferential allotment.
Investors have in recent times been complaining about the delay in receipt of share certificates on public offers, a development that has put registrars on the hot seat. The Commission has on its part rolled out strong warning against delay in issuance of share certificates and embark on on-the-spot check on registrars.
In a move to prevent conflict of interest on the part of registrars, the Commission declared in the public notice that with effect from April 1, 2008, no registrar shall be allowed to administer the register of any public company to which it is a subsidiary, a holding company, a related company or which has substantial shareholding in the said registrar, or in which the said registrar has substantial shareholding.
The Commission also warned that any violation of its directive shall attract sever sanctions including outright withdrawal of registration to operate in the Nigerian capital market.
The commission advised all investors in the market who have not received their share certificates and return/surplus monies in respect of all public offers that closed on or before October 31, 2007 to forward their complaints in writing to its Director-General through any of its offices in Abuja (head-office), Lagos, Port-Harcourt and Kano.
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