SEC Issues Deadline For Registration of Unlisted Securities  ***Says No official application has been received from MTN

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The Securities and Exchange Commission (SEC) has issued Dec. 31 deadline to public companies to register all their securities with the commission to boost the NASD Over-The-Counter (OTC) market.

SEC Acting Director-General, Ms Mary Uduk   who disclosed this at the second post Capital Market Committee (CMC) meeting in Lagos, noted that all public companies in Nigeria had till the end of this year to ensure that trading in their securities was done through SEC approved platform.

According to her the commission has distributed letters to all registrars to fast track compliance with the rule and ensures that public companies abide by the stipulated deadline.

She said to accelerate compliance, the commission will ensure that companies filing their returns must provide evidence in form of letters to show due registration with the regulatory authority.

Uduk said the commission had identified companies with shares trading actively on the OTC platform without registering their securities with the commission.

“If companies are bringing returns to us, we will check if the company has registered the securities with SEC, if yes, then the company must provide evidence of SEC registration letter,” she said.

Uduk said the commission might decide to adopt other means to ensure compliance after the Dec. 31 deadline.

Speaking on measures to make the primary market more active, she said the commission would streamline the entire issuing process, in addition to the issuing cost reduction achieved in 2017, adding that an impact assessment made on the cost reduction for primary equity and fixed income issues last year has attracted more issuers to the market.

On the MTN Group   filing of Initial Public Offering (IPO) whichhas been in the public domain for some time Uduk said that it had not received any official application from MTN despite media hype on the offer.

“Let MTN file first and the day they tell you they have filed watch us and count.

“Not what you see on the pages of newspapers. Let MTN file their application today and then watch us.

“If you like come and stay in the commission to monitor. I will make an exception. I will open the commission to the press.

“Let them just file, please tell them to file and leave the heat at the side of the commission because as we speak and as far as we know, MTN is still a private company until they convert to a public company and then file application with us,’’ Uduk said.

Uduk said that the commission was ready for MTN’s application and would ensure speedy process once the application was filed.

Forex: CBN injects $327m, CNY 69m into Retail SMIS

Image result for cbn nigeria

The Central Bank of Nigeria (CBN) has injected $327.4 million into the interbank retail Secondary Market Intervention Sales. This is in addition to the sale of CNY 69,707,333.39 in the spot and short-tenored forwards.

The figures obtained from the CBN at the weekend, showed that the dollar-denominated interventions were only for concerns in the agricultural and raw materials sectors.

The Acting Director, Corporate Communications at the CBN, Isaac Okorafor said the exercise, which was in tune with the  CBN guidelines, was for the payment of Renminbi denominated letters of credit for agriculture as well as raw materials. He added that the sales in the Chinese Yuan were through a combination of spot and short-tenored forwards, arising from bids received from authorised dealers.

While noting that availability of Renminbi was sure to ease pressure on the Nigerian foreign exchange market, Okorafor attributed the relative stability in the foreign exchange market to CBN intervention as well as the sustained increase in crude oil prices in the international market. He further assured that the CBN would remain committed to ensuring that all the sectors continue to enjoy access to the needed foreign exchange by Nigerians.

Meanwhile, $1 exchanged for N360 at the Bureau de Change (BDC) segment of the foreign exchange market, while CNY 1 exchanged for N53.35.

EFCC probes 35 capital market fraud cases

EFCC Magu

THE Economic and Financial Crimes Commission (EFCC) is investigating about 35 fraud cases at the capital market.

Sources confirmed at the weekend that the EFCC and the market regulators, especially Nigerian Stock Exchange (NSE), have stepped up collaboration on prevention of corrupt practices and market abuses with the NSE referring more cases to the anti-graft agency for investigation and prosecution.

A source indicated that the NSE recently suspended a retail stockbroking firm as part of a joint collaboration with the EFCC which had launched investigation into the activities of the firm for allegedly engaging in fraud.

Although the details of the cases could not be disclosed due to legal confidentiality and ongoing investigations, a review of the preliminary findings indicated that most cases relate to fraudulent sale of clients’ shares and diversion of clients’ funds, impersonation and false representation of products and services.

Already, EFCC has about five cases in court, in collaboration with capital market authorities. The agency prosecuted a case that led to a seven-year jail sentence and forfeiture of assets of a former managing director of a stockbroking firm.

The EFCC and capital market regulators operate a two-pronged strategy involving restitution and prosecution to secure restoration for investor and deter corrupt practices through criminal prosecution and recovery of illegal proceeds.

The NSE, through its Disciplinary Committee and Securities and Exchange Commission (SEC), through its Administrative Proceedings Committee (APC), run active investigative mechanism that seeks to uncover malpractices, sanctions indicted operators and restitutes affected investors. However, both NSE and SEC lack prosecutorial powers.

Capital market authorities had bridged the gap between their investigative powers and prosecutorial powers through Memorandum of Understanding (MoU) with the EFCC, which allows the organisations to collaborate on information sharing, investigation, prosecution and enforcement.

The Nation confirmed that there has been more than 100 per cent increase in capital market cases under investigation by the EFCC after last year’s meeting between the Acting Chairman of EFCC, Mr. Ibrahim Magu and Chief Executive Officer, NSE, Mr. Oscar Onyema and other top executives and stakeholders at the stock market.

SEC and EFCC had in January last year, signed an MoU that formally established the alliance between the two Commissions. The MoU seeks to promote efficient investigation and conclusion of all cases reported by either of the institutions to each other and to promote the integrity, efficiency and soundness of the capital market and the economy in general.

It also seeks to promote collaboration in the areas of training and secondment of middle cadre officers of the SEC to the EFCC and those of the EFCC to the SEC; or in the alternative, the establishment of a liaison desk in both Institutions as well as promote collaboration in other areas beneficial to both Institutions.

According to the MoU, the institutions shall provide each other with the utmost mutual assistance in any matter falling within their competences, including in particular the following areas: secondment of middle cadre officers, training to enhance the investigative skills and capacity of personnel of the institutions and consequently increase the general output and performance of the institutions and facilitate better understanding of each other’s functions through capacity building programmes and human capital development in the areas of investigation of fraud in the capital market.

The institutions will also collaborate in the areas of exchange of information to assist the performance of the institutions’ respective functions, reporting, investigation and prosecution of fraudulent and manipulative practices in the Nigerian capital market and any other activity as agreed between the institutions from time to time.

CBN auctions Chinese currency

The Central Bank of Nigeria sold yuan at a range of 49-51 naira at its first auction of the Chinese currency- Yuan.

The auction, which is part of an attempt to encourage the use of an alternative trading currency, particularly given the high level of imports from China, sold the yuan for immediate value and for 15-day settlement, traders said.

Some lenders got as much as 60 percent of the volume they applied for, while one bank got just 5 percent.

According to traders, the volume sold was based on the price quoted for the yuan at the auction.

Stock market capitalisation gains 0.84%

The All Share Index and the market capitalisation of the Nigerian Stock Exchange gained 0.84 per cent on Monday, starting the week on a positive note.

The All Share Index and the market capitalisation stood at 36,946.05 basis points and N13,384 trillion, gaining 309.08 basis points and N112 billion respectively.

At the end of the day, 31 registered stocks gained, 22 declined while all others remained the same as investors traded 3.19 million shares worth 3.05 billion Naira in 4,091.00 deals.

The top three gainers were Mutual Benefits Assurance Plc, which led the gainers chart with 0.03 kobo or 10.00 per cent ,when it opened for transactions at 0.30 kobo per share and closed at 0.33 kobo per share.

Following right after was Seplat Petroleum Development Company Ltd with an opening price of N625.00 per share and a closing price of N687.50 kobo per share, gaining N62.50 kobo or 10.00 per cent.

Then Northern Nigerian Flour Mills Plc trailed with an opening price of N6.55 kobo per share and a closing price of N7.20 kobo per share, gaining 0.65 kobo or 9.92 per cent.

Losers

Conoil Plc, which  opened at N27.00 per share and closed at N24.30 kobo per share , declined by N2.70 or 10.00 per cent.

It was followed by Pharma-Deko Plc with an opening price of N2.20 kobo per share and a closing price of N1.98, falling by 0.22 kobo or 10.00 per cent.

Medview Airline Plc fell by  0.21 kobo or 9.81per cent to close at N1.93 kobo per share, after opening at N2.14 kobo per share.

Chinese Yuan: CBN injects $340ml into Secondary Market Intervention Sales

Following last weeks take-off of its intervention in the sale of foreign exchange in Chinese Yuan (CNY), the Central Bank of Nigeria (CBN), on Friday, injected the sum $340, 507, 376.51 into the interbank retail Secondary Market Intervention Sales (SMIS).

This is also in addition to the sale of CNY 69,858,087.15 in the spot and short tenored forwards.

The figures obtained from the CBN on Friday, July 27, 2018 showed that the U.S denominated interventions were only for concerns in the agricultural and raw materials sectors.

According to the Acting Director, Corporate Communications at the CBN, Isaac Okorafor, the sales in the Chinese Yuan were through a combination of spot and 15-day tenors.

He said the exercise, in line with its guidelines, were for the payment of Renminbi denominated Letters of Credit for agriculture as well as raw materials and machinery.

Okorafor also explained that the requests attended to were bids received from authorized dealers, adding that the availability of Renminbi was sure to ease pressure on the Nigerian foreign exchange market.

He attributed the relative stability in the foreign exchange market hugely to the continued intervention of the CBN as well as the sustained increase in crude oil prices in the international market.

The CBN spokesman also reaffirmed the committment of the CBN to ensuring that all the sectors continue to enjoy access to the foreign exchange required for the business concerns, whether in United States dollars or Chinese yuan.

It would be recalled that the CBN last Friday, July 20, 2018, announced the commencement of its intervention in the sale of foreign exchange in Chinese Yuan (CNY), marking the concrete commencement of the Bilateral Currency Swap Agreement (BCSA) signed between Nigeria and the Peoples Bank of China (PBoC) on April 27, 2018.

The statement which announced the flag-off of the sale had explained that there would be no predetermined spread on the sale of FX Forwards by authorised dealers to end-users under the Special SMIS-Retail, adding that authorised Dealers would be allowed to earn 50 kobo on the customers bids.

Meanwhile, $1 exchanged for N360 at the Bureau de Change (BDC) segment of the foreign exchange market, while CNY 1 exchanged for N53.35.

Stock brokers to support SEC on capital market studies

The Chartered Institute of Stock Brokers (CIS) has pledged to support the Securities and Exchange Commission (SEC) to infuse capital market studies into the curriculum of schools in the country.
The Acting Director -General of SEC, Ms Mary Uduk, said this in a statement issued by the Acting Head of Media of the commission, Mrs Efe Ebelo, in Abuja.
The President of CIS, Mr Dapo Adekoje, made the pledge during a meeting between CIS and management of SEC in Abuja.
Adekoje commended the SEC on its investor education initiatives and assured that the institute was willing to support any programme that would help deepen the market.
He said: “We have visited some schools and realised that most students do not have elementary knowledge of the capital market.
“We believe that if Nigerians are aware early in life of the benefits of investing in the capital market, it will increase the percentage of participation and also help to deepen the market.”
The SEC director-general said the commission was open to any collaborative efforts that would increase financial literacy among Nigerians.
“We are making progress with Nigerian Educational Research and Development Council (NERDC) on the development of the curriculum.
“And we hope the introduction of capital market studies will start from the secondary schools up to our tertiary institutions.
“The 10-year Capital Market Master Plan requires SEC to inculcate the culture of financial literacy and specifically to introduce Capital Market Studies (CMS) into curriculum at all levels of education.
“And also to encourage CMS as a degree programme in the tertiary institutions,” Uduk said.
The apex regulator of the Nigerian capital market is developing a curriculum on capital market studies as part of the financial literacy programme.
The curriculum is geared towards boosting investment education in the country.

CBN to lenders: Submit bid for Chinese Yuan

Image result for yuanThe Central Bank of Nigeria on Friday asked lenders to submit bids for the Chinese yuan, according to traders, in the first auction after it agreed a $2.5 billion swap with its Chinese counterpart in May.

The auction is part of an attempt to encourage the use of an alternative trading currency, particularly given the high level of imports from China, which amounted to $2 billion last year.

Traders cited a central bank memo to lenders and said the auction would be for spot and forward settlement and the exchange rate will be determined by a book building process. The bank said it will receive bids between 0800 and 1100 GMT.

Earlier this month, central bank officials held a town hall meeting with businesses to introduce the Yuan as an alternative to the Dollar for imports from China ahead of plans to start auctioning the Asian currency.

Capital Market: Senate plans legislation to revive market

The Nigerian National Assembly has expressed determination to revive the nation’s capital market through legislation to contribute to infrastructure development in the country.

 

The Chairman Senate Committee on Capital Market Senator Foster Ogola stated this at a joint briefing by the National Assembly joint committee on Capital Market on the forth coming Bi-Annual Stake Holders’ Summit on Capital Market.

 

Senator Ogola explained that the National Assembly will continue to provide the legislative support for the sector to provide necessary funding for capital projects to reduce budget deficit.

 

“This event of 23rd July is expected to yield productive recommendations on how to enhance the Nigerian Capital Market potentials towards enabling it to mobilize multi-billion dollar development funds from across the globe towards a past phase execution of infrastructure projects nationwide instead of relying on government’s limited annual budget.” Sen Ogola maintains.

 

Meanwhile his counterpart of the House of Representatives, Mr. Tajudden Yusuf from Kogi State explained that deliberate efforts have been made to boost the commodity exchange to boost agriculture as a means of diversification.

 

While stressing the need for effective commodity exchange platform to drive the agricultural revolution Mr. Yusuf said “Nobody will return to a venture that pays you less than what you invested in it.

 

Commodity exchange platform will help in standardization of the products at the same time farmers get adequate return.

Deliberately in this year’s conference we designed a topic to expand the scope of commodity exchange and to bring Nigerians to be conscious of it.”  

 

Capital Market as a catalyst for economic growth and development is the theme of this year’s event, expected to feature presentations aimed at boosting the nation’s economy through infrastructure development.

 

Post-recession challenges, implications and opportunities for Nigerian Capital Market, Role of commodity exchange development of agricultural sector and capital market option for funding the development of major infrastructure, were the major topics to be discussed during the event.

6th Capital Market Information Security Forum To Be Hosted By Nigeria

The 6th edition of the Nigerian Stock Exchange’s bi-annual Nigerian Capital Market Information Security Forum (NCMISF) is set to hold on Wednesday, July 25, 2018, at the NSE Event Center, 2/4 Customs Street, Lagos.

The free to attend conference which was sponsored by FPG Technologies Ltd and Control Risks, is themed, “Social Engineering, The Neglected Human Factor”.

The forum is designed to leverage on user education and layered technology defences to better detect and respond to social engineering attacks in the capital market ecosystem, which will contribute to enhancing investor’s confidence.

The event will be attended by the Deputy Director/Head Exchanges, Securities and Exchange Commission (SEC), Mr. Emomotimi J. Agama.

It will also bring together, information security professionals and capital market participants to discuss emerging cybersecurity trends and share effective strategies and best practices to tackle cyber threats.

This edition of the Nigerian Capital Market Information Security will also feature panel discussion and speeches and presentations from the CEO FPG Technologies; Mr. Rex Mafiana,  and Head, Information Security, Mrs. Favour Femi-Oyewole.

Topics to be covered include, Reverse Social Engineering Attacks in Online Social Networks; Evolution of Cybercrime: The Present, Present, Future Social Engineering Attacks and Prevention; Plan for countering Cyber threats in the Nigerian Capital Market.

Commenting on the event, the Head, Information Security at The Exchange, Mrs Favour Femi-Oyewole said with the growing use of technology and digital tools in the capital market, creating awareness and educating individuals and companies on the significance of information security management have become critical in addressing today’s constantly evolving cyber threats.

Cyber security education
“The 2018 Verizon Data Breach Investigations Report, which shows that more than 70% of all data breaches in 2017 involved phishing or some other type of social engineering, underscores the need for continuous cybersecurity education, as human factor continues to be a key weakness. Cybersecurity is not just about technological defences, it is also about people,”
 he said.

Mrs Femi-Oyewole further stated that the NSE was committed to working with government, regulator, international and local partners, market participants and other stakeholders to monitor developments and effectively respond to cyber threats to provide a sustainable capital market.

“We all have a role to play in keeping the capital market secured.Meanwhile, The Bear has tightened its grip on the Nigerian Stock Exchange as it is evident in the continued fall of the Market Capitalisation and All Share Index,”he said.

At the close of Tuesday’s tradings, the All Share Index stood at 36,963.70 basis points, depreciating by 0.81 per cent or 303.16 basis points when compared to Monday’s closing of 37,266.86 basis points falling to the 36 thousand basis points.

The market capitalisation also fell by 0.81 per cent or 110 billion Naira to close on Tuesday at 13.390 trillion Naira as against Monday’s closing of 13,500 trillion Naira.

On Tuesday, investors traded 2.03 million shares at the value of 2.4 billion Naira in 4,178.00 deals.

Source: VON