The zero tolerance stance of the Securities and Exchange Commission (SEC) appeared to be impacting positively on the capital market as level of infractions has dropped by about 88 per cent over the past 18 months.
The Director General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, said the number of reported cases of infractions in the capital market has reduced from 291 in first quarter 2016 to 36 in the third quarter of 2017. He added that the number of enforcement cases has also dropped from 49 to 30 within the same period.
The SEC DG, speaking at the 21st annual conference of the Chartered Institute of Stockbrokers (CIS) yesterday in Lagos, noted that the Commission has strengthened its rule making process and more rules are considered on a timely basis with the underlying justifications which will aid the market’s understanding of the thought process behind coming up with the rules.
He said the decline in the level of infractions evidenced the success of recently introduced initiatives, which are believed to have help capital market stakeholders respond adequately to the dynamic changes in the financial market.
Gwarzo said the Commission is committed to continue developing the Nigerian capital market in line with the 10-year master plan.
He pointed out that the E-Dividend initiative is very central to the reforms at the capital market, which explained why the Commission has embarked on a massive media campaign to sensitize the public on the December 31, 2017 deadline on free e-dividend registration exercise and regularization of multiple accounts by investors.
He urged capital market participants to constantly adapt to new and rapidly changing economic, regulatory and business environments in order to performing their expected roles in economic development of the nation.