New SEC Acting DG Mary Uduk chairs first CMC meeting

The new Acting Director General of Nigeria's Securities and Exchange Commission (SEC), Mary Uduk, recently chaired the first Capital Market Committee (CMC) meeting of the year. The meeting highlighted key issues and initiatives aimed at enhancing the efficiency and growth of the capital markets in Nigeria. One of the main concerns raised during the meeting was the increase in enlistments in the listings by public companies, which could potentially impact market development. The committee discussed strategies to attract new listings and ensure a conducive environment for market participants. The SEC has updated its database for the registration of Capital Market Operators (CMOs) and issued new registration certificates without expiry dates to operators. The commission also announced the commencement of the distribution of electronic annual accounts of public companies, although feedback from shareholders associations raised concerns that will be further deliberated. The technical committee on e-dividend registration reported on the progress of the program, with approximately 2.5 million approved mandates and 466,000 unique investors' accounts. The commission emphasized the importance of transitioning towards electronic Initial Public Offerings (IPOs) to align with global market trends. Stakeholders, including the SEC, Nigeria's Stock Exchange, and various associations, established a committee to work on facilitating EIPOs in Nigeria. The meeting also addressed direct cash settlement, noting the need for increased participation to instill market confidence. The SEC reiterated its caution regarding cryptocurrencies, highlighting the risks associated with investments in unregulated entities. The commission called for stakeholders' cooperation in data collection efforts for impact evaluation studies on electronic dividend mandates, corporate governance, and capital flows. The outcomes of these studies will be shared with the public to assess the initiatives' impact on the market. Uduk emphasized the importance of collaboration with stakeholders, the media, and continuous engagement to develop the capital markets for the benefit of investors and the nation as a whole.