January 28, 2023

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CMC: Yuguda highlights Ponzi schemes’ threat to capital market devt


…As unclaimed dividend hits N171bn

The Securities and Alternate Fee (SEC) has described the actions of Ponzi schemes as most cancers that’s able to undermining the expansion and improvement of Nigeria’s Capital Market.

SEC Director Common Lamido Yuguda mentioned this throughout a Put up Capital Market Committee assembly press briefing in Abuja.

Yuguda insisted that the state of affairs was unacceptable particularly with the form of loss unsuspecting buyers proceed to endure.

Additional describing its effort to deal with Ponzi schemes actions as ‘combating a severe warfare’, the SEC DG mentioned it has finished plenty of sensitisation to discourage individuals from falling victims of the fraudsters.

“Sadly, lots of people nonetheless go to those individuals. It’s not tough to acknowledge a Ponzi scheme. Some are conscious that the presents are too good to be true.

Individuals want to know how anponzi scheme works. When the Return on Funding that you’re being supplied is approach greater than the conventional enterprise offers you.

He urged potential buyers to hunt clarification from the Fee if they’ve any doubt about any enterprise they had been going into urging Nigerians to ‘solely cope with registered operators  with the Fee.

“It’s depriving lot of households of cash that must be used for significant endeavours.”

The SEC helmsman mentioned the Fee has been collaborating with the NFIU, the EFCC, in addition to non-governmental organisations to deal with the menace of Ponzi schemes to Nigerians.

He disclosed that the Fee is in dialogue with the Lagos State authorities to setup billboards within the State to warn residents in regards to the risks of Ponzi schemes.

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On the unclaimed dividends, the SEC boss mentioned unclaimed dividends as on the finish of 2021 was N177 billion transferring from N168 billion in 2020.

Regardless of varied effort to make sure buyers declare their dividends many have nonetheless not been capable of explaining that the Fee will proceed to work with registrars to make sure dividends are disbursed electronically.

“Individuals will nonetheless must go to the registrars to offer data of their account in order that they are often credited instantly.”

He admitted that there’s want for elevated enlightenment of buyers.

The 2-day assembly was attended by over 300 capital market operators.