Lagos - The Association of Stockbroking Houses of Nigeria (ASHON) has canvassed the need to sensitise shareholders on the benefits of dematerialising their shares in the nation’s bourse.
Mr Emeka Madubuike, President of ASHON canvassed the sensitisation in an interview with the News Agency of Nigeria in Lagos on Tuesday.
Dematerialisation is the elimination of physical certificates or documents on ownership of securities through conversion to an electronic ownership mode domiciled with the Central Securities Clearing System Limited (CSCS).
He said that sensitisation, which would include nationwide enlightenment and investment road show, would also involve the nation’s capital market community.
Madubuike, who is also the Chairman of the Securities and Exchange Commission (SEC) Committee on Dematerialisation, said that the aim of the project was to ensure that investors’ buy into the electronic holding of share certificates.
He also said that the project would bring the 12 years dematerialisation policy to a conclusion.
He said that the Jan. 1, 2013 deadline for dematerialisation policy was unrealistic as most operators and investors were not aware of the date.
``I’m not aware of the notice, SEC has not done anything to implement it or ensure enforcement, if you put a rule that has to be enforced, people must be aware of the notice,” he said.
Madubuike said that his committee was working on the modalities for the nationwide project of educating and sensitising investors on the benefits of dematerisation.
He said that the committee’s proposed date for the conclusion of dematerisation was Jan. 31, 2013.
According to him, dematerisation needs a concerted effort of capital market operators toward removing all obstacles and re-educating shareholders.
Madubuike said that in addition to the electronic transfer of shares, the registrars register would also be moved to the Central Securities and Clearing System (CSCS).
SEC in a public notice dated March 13, set Jan. 1, 2013 as deadline for the dematerialisation of all share certificates.
The notice said that all share certificates dematerialised on or before Jan. 1, 2013, would be at no cost to the shareholder, but that there would be a penalty for those done after that date.
It also said that the allotment of shares of public offerings would from now be by electronic processes that would transfer shares directly to the CSCS.