Capital Market Committee Meeting Summary - Developments and Progress Update
Statistics regarding BVN validation by stock brokers and registrars, approved mandates over a 12-month period, and major progress in automated direct debit of investors were discussed at the Capital Market Committee meeting. The meeting highlighted challenges such as resource constraints at NIBSS and banks affecting progress, investor caution post-free registration cessation, and regulatory constraints hindering payment processing. Collaborations with NSE and NIBSS to enhance services in the capital market were also emphasized.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
2018 3RDCAPITAL MARKET COMMITTEE MEETING Wednesday, 14thNovember, 2018 E-dividend committee s PResentAtion
Statistics of BVN Validation By Stock Brokers and Registrars in a Year Period 3500 3000 2889 2753 2,627 2500 2444 2364 2256 2250 2061 2045 2028 2016 2000 1805 1500 1469 1435 1228 1216 1188 1000 500 229 195 173 105 93 78 50 0 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Stockbrokers Registrars Total Number of Active Stockbroking Firms on BVN Portal - 85 Total Number of Active Registrars on BVN Portal - 11 in September 2018 2
Statistics of Approved Mandates (12 Months Report) Approved Mandates 70000 64376 60000 48284 50000 47500 45817 44644 40000 37153 30000 20740 18111 20000 17228 16572 16027 13166 10000 0 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 3
MAJOR PROGRESS SINCE THE LAST CMC MEETING The Automated Direct Debit of Investors for approved mandates currently have 2 banks while 8 banks have signed UAT. The remaining banks are still at various stages of implementation making manual debit of investors account inevitable. Registrars have been paid e-DMMS processing fee proceeds for April-July 2018 on September 04, 2018. This is for e-DMMS mandates processed after the expiration of free processing period in March 31, 2018. SEC is yet to pay the outstanding period from October 2016 March 2018. There has been a consistent reduction in e-mandate activities since the cessation of free registration in April, 2018. We enjoin the stakeholders to resume sensitization so as not to lose the momentum gained over the years. Email and Telephone Number data search service has commenced for Registrars and capital market operators that wants to update their investor records especially. CSCS is currently implementing Name Enquiry service for confirmation of account numbers. This is part of the collaboration with NIBSS to entrench BVN related services in the capital market. SLA with NSE on e-IPO is almost complete. NIBSS requires NSE to produce a written consent from SEC in order to fully deploy BVN services to the e-IPO portal. The system itself is 95% operational.
FACTORS RESPONSIBLE FOR DEVELOPMENTS Resource constraints at NIBSS and the Banks have severely impaired the progress of the Automated Direct Debit of Investors for e-DMMS. Investors have become cautious following the cessation of free e-DMMS registration. This reflects in the low numbers reported for e-DMMS registration Progress of work on the SLA with NSE on the e-IPO has halted. This is because the new CBN Guidelines for BVN Information Sharing forbids NIBSS from sharing information with private organisation like NSE except with sectoral Regulatory Institution s consent. Payment of e-DMMS processing fees from October 2016 to March 2018 is still being hindered by regulatory constraints.
