From September 1, Direct Cash Settlement Becomes Mandatory – SEC
If you hold any shares in the Nigerian capital market, this news should excite you.
From September 1, if you ask your stockbroker to sell your shares, he/she will do so and credit your account immediately.
This follows the introduction of a policy called, Direct Cash Settlement, DCS.
Mr Mounir Gwarzo, the Securities and Exchange Commission Director-General, disclosed this at the 2017 First Post-Capital Market Committee (CMC) news conference in Lagos on Wednesday.
Gwarzo said the measure was to improve transparency, trading velocity, entrench investor’s confidence and reduce market infractions.
Gwarzo said that the committee introduced the DCS last year.
“We introduced it to be voluntary, but when we saw some of the recent events in the market, the committee decided to make it compulsory for every investor.
“We have agreed that by Sept. 1, DCS will be mandatory for every investor, meaning that every investor will key into DCS unless the investor decides to opt out,” Gwarzo said.
Gwarzo said that the DCS would reduce illegal sale of shares and promote transparency in the market.
The Director-General said that the commission would pursue its financial literacy campaign to make Nigerians know more about the capital market and ways to invest.