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 Tide in Lagos.
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
He said that sensitisation, which would include nationwide
enlightenment and investment road show, would also involve the nation’s capital
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
He also said that the project would bring the 12 years
dematerialisation policy to a conclusion.
He said that the January 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 January
According to him, dematerisation needs a concerted effort of
capital market operators toward removing all obstacles and re-educating
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 January 1,
2013 as deadline for the dematerialisation of all share certificates.
The notice said that all share certificates dematerialised
on or before January 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.