Capital Market: SEC to Reduce Cost of Transaction

• Capital Market: SEC to Reduce Cost of Transaction

The Nigerian Securities and Exchange Commission (SEC) on Wednesday said it has taken steps to lower transaction fees in order to reduce unnecessary costs incurred by investors.

Ms Mary Uduk, the acting Director-General, SEC, who was represented by the acting Executive Commissioner, Operations, SEC, Mr Isyaku Tilde, at the Association of Corporate Trustees in Abuja on Wednesday, encouraged investors to participate in the market to grow it.

She said the SEC is working on reducing transaction costs and committed to protecting investors in the capital market.

She said, “We are doing a lot to boost investors’ confidence in our market; but I want to say that both local and foreign investors are very good for the market, especially foreign investors.

“Foreign investors trade their shares all of the time it leads to price discovery as against the local investors that just take a long-term view on their investments.

“Investors’ fears can be of two folds, firstly they could be afraid because they feel that capital market operators will mismanage their investments; secondly is looking at the volatility of the market that makes investors sceptical.”

The acting Director-General also mentioned the e-dividend mandate system and the direct cash settlement as some of the initiatives put in place by the commission to boost investors’ confidence.

“We are committed to protecting investors in the work we do. We will keep working on our rules and the possibility of amending them when the need arises because we want more transparency in the market so that investors will feel comfortable and the market can be better.”

“Investors are also protected through the National Investors Protection Fund Risk-Based supervision that enables SEC to supervise the operators and ensure that they do not do what they are not supposed to do,” Uduk stated.