SEC to Issue Framework for Bank Recapitalisation
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has announced plans to release a framework to guide the capital market in the upcoming bank recapitalisation exercise.
Acting Director General Dr. Emomotimi Agama revealed this during a weekend meeting with executives of the Institute of Capital Market Registrars (ICMR) in Abuja.
Dr. Agama reassured the stakeholders, stating, “We are addressing the issues surrounding the recapitalisation exercise. Soon, we will present a framework to guide the market.” He emphasized the importance of cooperation and joint efforts to tackle major challenges within the market, saying, “We are in this together and will continue to do our best. We need your cooperation to address these challenges.”
A major focus of the meeting was the persistent issue of unclaimed dividends. Dr. Agama urged registrars to adopt technological solutions to eliminate this problem. He described unclaimed dividends as a “monster” that must be dealt with immediately. “Whatever it takes to resolve this issue, we must do it. Technology is a key solution. Let’s combine our efforts to find a workable solution and ensure unclaimed dividends become a thing of the past,” he said.
Dr. Agama also noted the SEC’s commitment to engaging with different segments of the capital market to resolve outstanding issues. He revealed plans to hold stakeholder meetings to facilitate direct communication and address any lingering concerns. “We will interact with all stakeholders. There may be unresolved matters due to the transition, but we are committed to addressing them in the interest of the market,” he added.
Expressing gratitude for the opportunity to serve before formal Senate confirmation, Dr. Agama acknowledged the government’s proactive approach in appointing an acting management team to address current challenges. “This shows the importance of the capital market to President Bola Tinubu’s administration, and we are grateful for the trust placed in us,” he stated.
Also speaking at the meeting, Acting Executive Commissioner Operations Mr. Bola Ajomale emphasized the necessity for registrars to embrace technology. He pointed out that technological adoption is crucial for ensuring efficiency and system sanitization. “You are central to our operations, but technology is advancing rapidly. Embracing technology will make processes easier and more efficient,” Ajomale said.
In response, ICMR President Mr. Seyi Owoturo congratulated the new SEC management on their appointments and affirmed the registrars’ commitment to supporting the capital market’s interests. Owoturo stressed the need for registrars to ask critical questions during transactions to maintain market safety, especially with the impending banking recapitalisation which will demand greater capacity from registrars.
“We must ensure the market is safe for everyone. With the upcoming recapitalisation, registrars need to be prepared for increased demands by embracing technology,” Owoturo concluded.
