MULTIPLE SHARE SUBSCRIBERS TO FORFEIT HOLDING IF...

Have you ever engaged in multiple subscription for shares on public offer in Nigeria to beat permitted limits per person? Then get prepared to lose your dividend and even shares if by September 1 you do not consolidate them.

According to a public circular posted by the Securities and Exchange commission yesterday June 20 on its website, the practice was not healthy for the Nigerian capital market and SEC set up a committee to review what to do about it.

Multiple subscribers usually use different variations of their name to apply for shares in other to be allocated more than stipulated units per investor, and so the committee recommended that those who could be verified be allowed to consolidate their holdings into one name by PR before September 1 this year.

If they fail to do so or can not be verified as shareholders, dividends accrued to the holdings and even the shares will be forfeited to the National Capital Market Development Fund..

The recommendation, says SEC; has been accepted by all major players in the market and will be implemented after the September date.

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