Capital market infractions drop by 88% in 18 months

• Capital market infractions drop by 88% in 18 months

The number of reported cases of infractions in the Nigerian capital market has reduced by over 87.6 per cent from 291 in the first quarter of 2016 to 36 in the third quarter of 2017.

This is contained in the Securities and Exchange Commission’s recent data.

This feat, according to findings, was the result of some of the recently introduced initiatives of the Nigerian capital market apex regulator, SEC.

Also, the number of enforcement cases had come down from 49 to 30 within the same period.

To this end, the Director-General, SEC, Mr. Mounir Gwarzo, has urged capital market participants to constantly adapt to new and rapidly changing economic, regulatory and business environments which will aid them in performing their expected roles towards the economic development of the nation.

Speaking recently at the annual conference of the Chartered Institute of Stockbrokers, Gwarzo stated, “Almost everything now comes down to the application of (relevant) technology. In fact, at the nucleus of dynamic changes is technology.

“The financial market institution of the future is one that is currently making conscious effort to automate its processes by leveraging relevant technology.”

He however noted that as an evidence of the responses to dynamic changes in the Nigerian financial market, the capital market had begun to observe the evolution of new products and processes such as Sukuk, green bonds, derivatives, commodities and financial technology.

On market regulation and development by SEC, he said that the commission was committed to continue developing the Nigerian capital market in line with the 10-year master plan.

According to the SEC DG, the electronic dividend initiative is very central, as the commission has, recently, embarked on a massive media campaign to sensitise the public to the December 31, 2017 deadline on free e-dividend registration and regularisation of multiple accounts by investors.

In addition, he highlighted that the commission had strengthened its rule-making process, of which more rules were considered on a timely basis with the underlying justifications which would aid the market’s understanding of the thought process behind coming up with the rules.

He maintained that all the initiatives introduced and results were believed to help the capital market stakeholders respond adequately to the dynamic changes in the financial market.