>Institute flays regulators on common register
The Institute of
Capital Market Registrars (ICMR) has faulted the Central Bank of
Nigeria (CBN) and Securities and Exchange Commission (SEC) on the
proposed common share registry for all banks in the country.
David Ogogo,
registrar and chief executive officer of ICMR, said in a statement that
ceding all bank equities to a single entity would create a monopoly.
“This would run
contrary to SEC’s role in guarding against anti-competition practices
in the capital market. And that bank equities currently account for
about 66 percent of the market capitalization of the Nigerian Stock
Exchange (NSE).”
He said that
instituting a single registry for banks would mean that many
shareholders records would be moved from one place to the other, which
would lead to chaos.
Mr. Ogogo condemned what he described as the persistent attempt to single out registrars as the problem of the capital market.
He said the institute expects that the new CBN policy on universal
banking would have positive corporate governance implications in the
capital market, especially as banks would no longer control non-banking
subsidiaries.
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