LAGOS, JUNE 29, 2017 – The Securities Exchange Commission (SEC) has warned investors in the Nigerian Capital Market with multiple subscriptions for the same public offer that they may forfeit their investment.
SEC at its last Capital Market Committee meeting (CMC) has approved the report of a market wide committee on formulating a uniform position for the treatment of multiple subscriptions to public offers.
According to a circular from the SEC, the Nigerian Capital Market cannot and should not be seen to reward the wrongful acts/illegality of the perpetrators. This was with a view to ensuring the global sustainability of the Nigerian Capital Market’s integrity and reputation.
The Circular observed that one major source of unclaimed dividend remains the use of non-existent identity to make multiple subscriptions to public offers. The Committee unanimously agreed that the action of submitting Multiple Applications for the same Public Offer was, in every consideration, illegal.