SEC assures investors of safety ahead of General Elections

The Acting Director-General, Securities and Exchange Commission, (SEC) Ms. Mary Uduk, has assured investors in the capital market that there is nothing to fear regarding the performance of the market as the 2019 election approaches.

The SEC boss while speaking on the sidelines of the just-concluded World Bank/International Monetary Fund Annual Meetings in Bali, Indonesia noted that the upcoming elections might have made some investors to hold back their investments and sell or adopt a ‘wait and see’ strategy until after the elections, but added that it was nothing to worry about.

Uduk revealed that the regulatory agency is working assiduously to build investors confidence in the market and encourage more retail investors.

According to her:

“We understand the importance of foreign investors for market efficiency, liquidity and transparency. However, it is also important for us to develop local investors by building their confidence and encouraging their participation.

“We have made a lot of progress in that direction like risk-based supervision, zero tolerance to infractions in the market, and complaint management framework, among others. If you do not tolerate infractions, investors will know that somebody is watching their backs.”

She further stated that SEC was exploring avenues to deepen the market through the introduction of different products such as derivatives, non-interest capital market products and commodities, adding that rules on derivatives as well as having a standing committee in developing a vibrant commodity ecosystem were being finalised.

According to her the commission has several initiatives such as the e-dividend and direct cash settlement, which she said were all geared towards encouraging investors in the Nigerian capital market.

The Securities and Exchange Commission (SEC) is the apex regulatory body for Nigerian capital markets. The SEC came into existence in 1979, following a comprehensive review of the Nigerian financial system, with the promulgation of SEC Decree No. 71 of 1979.

 

Source: Nairametrics

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