SEC to issue framework on banks' recapitalisation

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The Securities and Exchange Commission (SEC) has said that it will soon issue a framework that will guide the capital market in the proposed recapitalisation exercise by banks.

The Acting Director General of the SEC, Dr Emomotimi Agama, disclosed this during a meeting with the executives of the Institute of Capital Market Registrars in Abuja during the weekend.

According to the Acting SEC DG, “We are on top of the issues around the recapitalization exercise; very soon we will come up with a framework to guide the market.”.

Agama also stated that the Commission is willing to interact with various segments of the capital market to ensure that all pending issues are resolved in the interest of the market.

He said, “We will hold stakeholder’s meetings where we will speak to everyone, and stakeholders will also have the opportunity to interact with us.

“The idea is to interact with you all. There may be things hanging, and due to the transition, we do not want to miss anything. It will still be attended to in the interest of the market.”.

Agama commended the FG for the opportunity to serve before formally being cleared by the Senate in order to continue activities in the capital market.

According to him, “We see it as an opportunity to be asked to act before our confirmation; it is not normal. In this case, we needed to deal with challenges, and that’s why the government thought it wise for us to come in and work in an acting capacity.

“It shows how important the capital market is to the administration of President Bola Tinubu, and we do not take this opportunity for granted.

“We will come up with a framework to move the market forward. We are in this together, and we will continue to work and do our best.

“This is our constituency, and we will do our best. We crave your cooperation to help us deal with major challenges.”

Agama implored the registrars to embrace technology as one of the ways of ensuring that the issue of unclaimed dividends in the capital market becomes a thing of the past.

“Unclaimed dividends are a monster that we must deal with now. Whatever it will take to deal with it, we must do it. We must embrace technology as one of the ways to deal with it.

“Let us put our thoughts together and provide a workable solution; let us ensure that this becomes a thing of the past.

“We need to provide a solution, and the time is now. As custodians, we implore you to provide practicable steps to address this issue,” he said.

Also speaking, the Acting Executive Commissioner of Operations, SEC, Mr Bola Ajomale, urged the registrars to embrace technology, which he said is the best way to ensure timeliness and sanitise the system.

He said, “You are a major central point that we have worked with over time. There is risk because technology is competing with you.

“It will be useful to talk to your members about embracing technology, as the best way to make life easy for everyone is to sanitise the system.”

In his remarks, the President of ICMR, Mr Seyi Owoturo, congratulated the new SEC management on their appointment and pledged that the registrars would continue to work in the interest of the capital market.

Owoturo said registrars have a duty to ask questions when transactions happen so as to make the market safe for everyone, adding that with the banking recapitalisation coming, registrars need to embrace technology as there are going to be serious demands on their capacity.

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