Shareholders worry over management of market devt fund
Let’s wait and see – Afeez Idowu, Medical Doctor and a shareholder
NIGERIAN Capital Market Development Fund, NCMDF is a new initiative by the Securities and Exchange, SEC, aimed at reducing or eradicating the rising unclaimed dividend by shareholders of quoted companies.
The seed funding coming from the Commission is laudable and showing its commitment to end unclaimed dividend. The problem is managing the fund; many shareholders believe that government agencies are not good at managing money.
I am not so sure of what SEC’s role would be in this development Fund. Until we get the full detail of how it will be run, one cannot really say much. Apparently, it is not good for investors to use fake names in investing in shares; it is my hope that with the Capital Market Development Fund, such practice would be eliminated. It is about time we begin to eliminate practices that will discourage both local and foreign investors from coming into our market.
Good initiative, but …. -Egbejiogu Chigozie, Business Man
THE Nigerian Capital Market Development Fund is a good initiative introduced by the SEC, provided it will be well managed. It will foster investments in the capital market, as investors’ confidence would be heightened.
The only issue is how the Fund would be managed and who is to be held accountable when it is mismanaged. I hope that the Board of this Fund should be occupied by people with integrity and track record.
I hope with the existence of such Fund, investors will stop using fake names to buy shares, knowing that when caught such shares would be forfeited to the Fund.
I think the Fund to be established by SEC is like a security measure against financial malpractice and it will also help to checkmate money-laundering in the capital market.
Hope it will not be mismanaged – Ebuka Benedict, Entrepreneur and shareholder
THE Nigerian Capital Market Development Fund is a welcome idea, provided the Fund can be use to develop the capital market.
Let us wait to see more details about the Fund for more comment. I hope it will not be like the other previous government’s Fund that went into extinction.
With regard to the use of non-existent identity in making multiple subscription of shares, I know that multiple application for share subscription is illegal even criminal. An investor is not expected to apply for shares more than once and with different names; that act was done during the indigenisation and privatisation era of public enterprises. I don’t think it is happening in this dispensation as shareholders and operators are better enlightened.
SEC is eying shareholders’ money – Nwachukwu Prince – Medical Doctor
I THINK the apex regulatory body in the Nigerian capital market is interested in shareholders’ money. The Commission had tried to set up Unclaimed Dividend Trust Fund in the past and this was resisted by shareholders because of lack of trust in the management of public funds. Why is it that SEC is always interested in using shareholders money to develop the market? The Commission receives allocation from the Federal Government, so that should be enough to develop our market.
The shareholders should be allowed to determine what happens to their money. I believe that the Companies and Allied Matters Act, CAMA settles the issue of unclaimed dividend. The SEC should concentrate on the area of market development and not interfering with shareholders’ money. SEC should strengthen its market surveillance and should ensure that people who go against the rules are punished according to the law.
The SEC should discourage people from using fake names in buying shares and this can be done by putting punitive measure in place. I don’t believe in the idea of managing shareholders’ Fund.
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