from oce&r quarterl. 2sec.gov.ng/files/sec ng quarterly report q4 2012. 2.pdf · 7"...

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SEC NG Quarterly Q4 2012

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TABLE OF CONTENT

Page CONTENTS

03 PRIMARY AND SECONDARY MARKETS

20 MONITORING AND INVESTIGATION

35 SECURITIES AND INVESTMENTS SERVICES

44 FINANCIAL STANDARD AND CORPORATE GOVERNANCE

46 COLLECTIVE INVESTMENT SCHEMES

56 LEGAL

57 ENFORCEMENT AND COMPLIANCE

58 REGISTRATION AND RECOGNISED INVESTMENT EXCHANGES

ACTIVITIES OF ZONAL OFFICES

62 LAGOS

63 IBADAN

64 PORT HARCOURT

65 KADUNA

66 ONITSHA

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PRIMARY AND SECONDARY MARKETS

PRIMARY MARKET

NEW ISSUES

During the fourth quarter, 2012, Market activities improved significantly as twelve (12) new issues worth N201.64 billion were floated during the fourth quarter, 2012. The issues, as shown in Table 1 below, included three (3) rights offers, five (5) placements, one (1) corporate bond and three (3) sub-national bonds. In the preceeding quarter, the market only recorded floatation of three (3) equity issues worth N7.23 billion only.

The Debt Management Office (DMO) on behalf of the Federal Government of Nigeria sustained its monthly bond issuance with the floatation of eight (8) issues at N201.49 billion. In the preceding quarter, the DMO auctioned eight (8) FGN bonds worth N210.0 billion.

The number and value of new issues in the fourth quarter consequently summed up to twenty (20) and N403.13 billion as against eleven (11) and N217.23 billion respectively in the third quarter, indicating 82% and 86% increase in terms of number and value of issues respectively.

TABLE 1: SUMMARY OF NEW ISSUES IN 3rd and 4thQUARTER OF 2012

Mode of Offer

No. of Issues Value of Shares(N’ m)

Q3 Q4 Q3 Q4

Rights 2 3 6,872.85 56,292.84

Special Placement 1 5 352.95 14,407.23

Total Equities 3 8 7,225.80 70,700.07

Corporate Bond 0 1 0.00 940.00

Sub-national Bond 0 3 0.00 130,000.00

FGN Bonds 8 8 210,000.00 201,490.00

Total Debt Securities 8 12 210,000.00 332,430.00

Overall 11 20 217,225.80 403,130.07

Source: SEC, DMO

Descriptions of the equities floated in the quarter, including statements of proceeds utilization are given below:

JAIZ Bank Plc

The non-interest bank made two (2) placements; one involving 3.60 billion ordinary shares sold at N1.00 per share amounting to N3.60 billion and the other of 4.40 billion ordinary shares sold at N1.15 per share worth N5.06 billion. One of the placement was issued to Althani Investment

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Ltd and other Institutional/High Networth investors, while the other was issued to Islamic Development Bank (IDB) and other Institutional/High Networth investors.

The proceeds from the offers is expected to be utilized for:

o Branch expansion of 17 branches each in the Northern and Southern part of the country.

o Information Technology Enhancement (ICT infrastructure for new branches and upgrade for the bank)

o Working capital

Food Concepts Plc

The company privately placed 1.20 billion units of its shares at N2.25 per share for N2.70 billion. Proceeds from the offer is expected to be utilized in the following proportions:

o Rollout/revamp of stores (Lagos, Abuja and Port Harcourt) – 43% o Completion of Central Kitchen & IT Infrastructure (V.I Lagos) – 21% o Brand Acquisition (rights to trademarks/brands) – 30% o Working capital – 3% o Cost of issue – 3%

African Paints Plc

The company made a rights offer of 130 million ordinary shares of 50k each at N1.25 per share, amounting to N162.50 million. After deduction of the offer cost estimate, the proceeds would be applied as follows:

o Payment of outstanding obligation – 46.84% o Working capital – 53.16%

Vital Products Plc

The company placed 617. 23 million units of its shares at N2.59 per share for about N1.598 billion to a core investor, Blue Falcon 165 Trading (Proprietary) Ltd. The proceeds is expected to be utilized in the following proportions:

o Acquisition of new plant and machinery –18.17% o Acquisition of enterprise resource planning software – 1.00% o New factory land - 46.79% & o Building – 34.05%

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Infrastructure Bank Plc

The bank issued to its existing shareholders 1. 55 billion units of shares at N1.00 per share for about N1.55 billion. After deduction of the cost of offer, the proceeds would be applied as follows:

o Facilitating project finance – 65.84% o IT (Software & General IT upgrade) and office refurbishing – 3.29% o Working capital enhancement – 14.41% o Debt repayment – 16.46%

Oando Nigeria Plc

The company issued rights of 4.55 billion ordinary shares, which was sold at N12.00 per share for the sum of N54.58 billion. The proceeds was to enable the company execute the following:

o Refinancing of upstream assets (part repayment of N60 billion syndicate loan) – 52%

o Part financing of acquisition of upstream and mid-stream assets – 45% o Enhancing working capital – 3%

Linkage Assurance Plc

The insurance company made placement of 2. 90 billion units of its shares, which was sold at N0.50 per share for N1.45 billion, to enable it finance the following:

o Upgrade and branch expansion – 13.17% o Investment in information technology – 9.06% o Construction of regional office in Yenagoa – 16.75% o Working capital – 23.26% o Underwriting of oil and gas insurance – 37.76%

TABLE 2: EQUITY NEW ISSUES IN THE FOURTH QUARTER OF 2012

Issuer Issue Type Offer Price Volume Value(N)

Offer Opening

Date

Jaiz Bank Plc Placement 1.15 4,400,000,000 5,060,000,000.00 02/10/12

Jaiz Bank Plc Placement 1.00 3,600,000,000 3,600,000,000.00 28/10/12

Food Concepts Plc Placement 2.25 1,200,000,000 2,700,000,000.00 19/11/12

African Paints Plc Rights 1.25 130,000,000 162,500,000.00 26/11/12

Vital Products Plc Placement 2.59 617,229,730 1,598,625,000.00 10/12/12

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Infrastructure Bank Plc Rights 1.00 1,551,500,000 1,551,500,000.00 17/12/12

Oando Nigeria Plc Rights 12.00 4,548,236,276 54,578,835,312.00 28/12/12

Linkage Assurance Plc Placement 0.50 2,897,207,843 1,448,603,921.50 31/12/12

Total

18,944,173,849 70,700,064,233.50

Source: SEC

The only corporate bond floated in the quarter involved C & I Leasing Plc. The company raised a 5-year bond worth N940 million with an 18% coupon rate and maturity of 2017. The proceeds would be utilized in the following proportions:

o Repayment of existing bank loan and other commercial debt – 60% o Acquisition of IT infrastructure (software and Hardware) – 3% o Investment in working capital – 37%

TABLE 3: CORPORATE BOND ISSUES IN THE FOURTH QUARTER OF 2012

Issuer

Offer Price (N) Volume

Value

Naira Coupon Maturity Date

Opened

C & I Leasing Plc 1,000 940,000.00 940,000,000.00 18% 2017 29/10/12

Total

24,083,043 3,740,304,300.00

The breakdown of proceeds utilization as stated by the issuing state governments during the quarter are as detailed below:

15.5% Gombe State N20 billion Bond

o Township roads – 31.58% o Regional roads – 14.41% o College of Education Billiri – 5.05% o School of Basic & Remedial Studies Kumo – 11.50% o Secondary Schools – 8.00% o Earth moving equipment – 3.05% o Mega park – 11.19% o School of Nursing– 6.24% o Refinancing of existing loans – 8.98%

14.5% Lagos State N80 billion Bond

o Construction of Adiyan Waterworks (Phase II) – 14.22% o Infrastructure developments (Roads, Rail, Buildings and Bridges etc) – 79.20% o Health facilities – 5.54%

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o Redevelopment of Eric Moore Schools (Phase I) – 1.04%

14.75% Osun State N30 billion Bond

o Road infrastructures – 45.14% o Commercial infrastructure (O-Hub, Dagbolu, Osun) – 12.10% o Urban Renewal (Ilesa, Ikire, Osogbo, Ede and Iwo) – 6.13% o Ede Waterworks – 6.91% o Refinancing of loan (FBN) – 29.72%

TABLE 4: SUB-NATIONAL BOND ISSUES IN THE FOURTH QUARTER OF 2012

Issuer

Offer Price (N) Volume

Value

Naira Coupon Maturity Date

Opened

Gombe State Government

1,000 20,000,000 20,000,000,000.00 15.5% 2019 02/10/12

Lagos State Government

1,000 80,000,000 80,000,000,000.00 14.5%

2019 12/11/12

Osun State Government

1,000 30,000,000 30,000,000,000.00 14.75%

2019 28/11/12

Sub-national Bonds 130,000,000 130,000,000,000.00

FGN Bonds

Table 5 below gives the details of the Eight (8) FGN bonds auctioned by the DMO in the fourth quarter, all of which were extension of bonds earlier issued. In total, the offers were over subscribed by 103.07% as investors staked N409.18 billion as against N201.49 billion sought by the FGN.

TABLE 5: AUCTION SUMMARY OF FGN BOND FOR THE FOURTH QUARTER OF 2012

S/N Issue Tenor

Amount Auctioned

(N’Bn) Level of Subs.%

Amount Subscribed

(N’Bn)

Amount Allotted

(N’Bn)

Marginal Rate (%) Applied

Date Auctioned

1.

April 27,2017(7th Issue) 5 15.00 253.67 38.05 15.00 15.10 17/10/12

2.

June 29,2019(5th Issue) 7 30.00 153.67 46.10 30.00 16.00 17/10/12

3.

January 27,2022(9th Issue) 10 30.00 200.57 60.17 30.00 16.39 17/10/12

4. June 29,2019(6th 7 25.00 224.20 56.05 25.00 16.00 21/11/12

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Issue)

5.

January 27, 2012(9th Issue) 10 25.00 259.84 64.96 25.00 16.39 21/11/12

6.

April 27,2017(8th Issue) 5 16.49 267.92 44.18 16.49 15.10 19/12/12

7.

June 29,2019(7th Issue) 7 30.00 140.50 42.15 30.00 16.00 19/12/12

8.

January 27, 2012(10th Issue) 10 30.00

57.52 30.00 16.39 19/12/12

Total

201.49 409.18 191.73 201.49

Source: Compiled from DMO Reports

REGISTRATION OF OTHER SECURITIES

Bonus Issues: In the fourth quarter, the Commission registered four (4) bonus issues of 2.23 billion shares with nominal value of N1.11 billion. In the previous quarter, Six (6) bonus issues, involving 6.61 billion shares with nominal value of N4.30 billion were recorded. Table 6 below shows the breakdown of 10 bonus issues during the quarter under review.

Table 6: REGISTERED BONUS ISSUES IN THE FOURTH QUARTER OF 2012

Company Volume (Unit) Nominal Value

(Naira) Bonus Ratio

Date Registered

1. Unity Capital Plc 866,666,667 433,333,333.50 1 for 15 05/11/12

2. AfromediaPlc 403,549,726 201,774,863.00 1 for 10 15/11/12

3. Oando Marketing Plc 87,500,000 43,750,000.00 1 for 4 15/11/12

4. Royal Exchange Plc 871,707,786 435,853,893.00 1 for 8 18/11/12

Total 2,229,424,179 1,114,712,089.50

Source: SEC

Existing Securities: A total of 13.16 billion existing securities with nominal value of N6.58 billion were registered in three (3) applications, two (2) of which were in favor of Ecobank Transnational Incorporated. Details are as shown on Table 7 below.

Table 7: REGISTERED EXISTING SECURITIES IN THE FOURTH QUARTER OF 2012

Company Volume (Unit) Nominal Value

(Naira) Date

Registered

1. Ecobank Transnational Incorporated (ETI) Plc 33,836,770 16,918,385.00 22/10/12

2. Ecobank Transnational Incorporated (ETI) Plc 3,125,000,000 1,562,500,000.00 22/10/12

3. Stanbic IBTC Holding Plc 10,000,000,000 5,000,000,000.00 29/10/12

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Total 13,158,836,770 6,579,418,385.00

ALLOTMENT CLEARANCE

Seven (7) allotment proposals, involving two (2) placements and five (5) bonds, were cleared in the fourth quarter. As shown on Table 8, all the offers were 100% successful. In the preceding quarter, only one (1) rights issue with 74.82% level of subscription was cleared.

Table 8: ALLOTMENT CLEARED IN THE FOURTH QUARTER OF 2012

Issuer by Offer Type

Volume of Securities

Offer Price

(N) Value (Naira) Level of

Subs.

Amount capitalized

(Naira) Approval

Date

Placements

Studio Press Nigeria Plc 252,104,285 1.40 352,945,999.00 100 352,945,999.00 05/10/12

Linkage Assurance Plc 2,897,207,843 0.50 1,448,603,921.50 100 1,448,603,921.50 31/12/12

Bonds

AMCON Series I

(trache 1-3) 2,298,009,960 N/A 1,699,435,549,000.00 100 1,699,435,549,000.00 31/10/12

AMCON Series II 567,192,674 735.64 417,249,619,000.00 100 417,249,619,000.00 31/10/12

AMCON Series III 122,395,132 725.69 88,812,356,000.00 100 88,812,356,000.00 31/10/12

AMCON Series IV 2,004,167,000 681.30 1,365,098,733,000.00 100 1,365,098,733,000.00 31/10/12

C & I Leasing Plc 940,000 1,000.00 940,000,000.00 100 940,000,000.00 24/12/12

Total 8,142,016,894

3,573,337,806,920.50

3,573,337,806,920.50

Source: SEC

SECONDARY MARKET

The market consolidated on its third quarter performance with positive stance especially in the new issues market. However, the degree of activity in the secondary market in the 4th quarter was lower than the position in the third quarter, for instance the All-Share Index (ASI), which appreciated by 20.43% in the third quarter, only inched up by 7.95% in the fourth quarter. This may be as a result of profit taking by investors and preparations for end of year festivities.

Details of activities and market trend for the fourth Quarter are given below:

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TRADING ACTIVITIES ON THE NIGERIAN STOCK EXCHANGE

Transaction statistics revealed that althrough, trading volume of securities declined by 3.42%, the value appreciated by 14.96% which was an indication of an improvement in share prices in the fourth quarter, 21.14 billion securities worth N181.39 billion exchanged hands in 265,634 deals in contrast to 21.88 billion securities valued at N157.66 billion in 262,288 deals traded in the third quarter.

Some of the securities traded in the fourth quarter were 5,400 units of FGN bonds (exchanged for about N5.66 million) 1000 units of corporate bonds (worth N0.10 million) and 22,098 units of NewGold ETF (traded for N58.34 million). However, equities trades accounted as 21.13 billion units of equities worth N181.39 billion exchanged hands 265,634 deals during the quarter. See Table 9 below.

Table 9:COMPARATIVE SUMMARY OF 3RD QUARTER 2012 TRADING ACTIVITIES IN THE NSE

SECURITIES

THIRD QUARTER 2012 FOURTH QUARTER 2012

Deals Volume (Unit) Value (Naira) Deals Volume (Unit) Value (Naira)

Government Bond 15 750 551,632.50 16 5,400 5,663,931.00

Corporate Bonds 1 10,000 946,410.00 1 1,000 100,000.00

Exchange Traded Fund (ETF) 140 70,672 181,790,503.00 71 22,098 58,337,773.00

Equities 262,132 21,884,747,628 157,663,438,385.36 265,634 21,136,992,063 181,389,169,444.62

TOTAL 262,288 21,884,829,050 157,846,726,930.86 265,722 21,137,020,561 181,453,271,148.62

Source: Compiled from reports supplied by The NSE

Transactions by Sectors: Generally, trading activities on the exchange concentrated on the Main Board. The three most active sectors by units of shares traded were Financial Services (13.032 billion shares), Consumer Goods (4.405 billion shares) and Conglomerate (1.305 billion shares) as shown in Table 10 below. The activities of these 3 most active sectors accounted for about 89% of the total number of units of securities traded.

In terms of transaction values, Financial Services accounted for 52.26%, Consumer Goods and Industrial Goods sectors controlled 37.86% and 3.68% respectively of the quarter’s total trading value. The values of transaction of the three (3) sectors were about 94% of the total value of transactions during the quarter.

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TABLE 10: TRADING STATISTICS BY SECTOR FOR THE FOURTH QUARTER OF 2012

Segment/Sector No. of Deals Volume of Securities

(units)

Value of

Securities Traded (Naira)

AseM

Construction/Real Estate 5 2,700 4,185.00

Consumer Goods 15 476,754 412,889.22

Healthcare 0 0 0.00

Industrial Goods 5 18,003 27,904.65

Natural Resources 0 0 0.00

Oil And Gas 9 188,723 979,352.56

Services 4 53,380 138,280.00

Sub-total 38 739,560 1,562,611.43

Main Board

Agriculture 2,649 355,022,533 1,278,987,120.04

Conglomerates 9,310 1,304,924,248 2,582,347,615.32

Construction/Real Estate 1,895 85,175,922 1,894,085,206.98

Consumer Goods 51,672 4,404,603,991 68,696,890,772.55

Financial Services 157,966 13,032,139,164 94,820,985,894.93

Healthcare 4,436 262,973,214 1,081,118,938.59

ICT 327 67,070,894 65,707,316.51

Industrial Goods 14,649 449,082,983 6,685,974,740.19

Natural Resources 174 59,779,361 39,521,117.30

Oil And Gas 15,324 561,470,719 3,297,777,103.50

Services 7,194 554,009,474 944,211,007.28

Sub-total 265,596 21,136,252,503 181,387,606,833.19

Total Equity 265,634 21,136,992,063 181,389,169,444.62

Exchange Traded Funds 71 22,098 58,337,773.00

Corporate Bonds 1 1,000 100,000.00

FGN Bonds 16 5,400 5,663,931.00

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Total Debt Securities 17 6,400 5,763,931.00

Overall 265,722 21,137,020,561 181,453,271,148.62


Top Twenty (20) Equity Transactions by Volume: As shown in Table 11, the top 20 most active equities by volume accounted for 77.97% of the total shares traded in the fourth quarter. The remaining One Hundred and Forty Six (146) equities accounted for the balance of 22.03%.

Equity with the most number units traded in the quarter was Dangote Flour Mills Plc, which accounted for 15.48% or 3.27 billion units of total equities traded. Zenith Bank Plc and Transnational Corporation of Nigeria Plc were second and third most traded respectively on the table.

TABLE 11: TOP 20 EQUITIES BY TRANSACTIONS VOLUME IN THE FOURTH QUARTER OF 2012

S/N Equity No. of Deals Volume (units) % of Total

1 Dangote Flour Mills Plc 3,711 3,272,586,841 15.48

2 Zenith Bank Plc 16,198 1,421,535,472 6.73

3 Transnational Corporation Of Nigeria Plc 6,118 1,267,578,030 6.00

4 U B A Plc 15,602 1,219,421,704 5.77

5 Access Bank Plc. 13,230 1,141,261,685 5.40

6 FBN Holdings Plc 32,168 1,127,807,747 5.34

7 Fidelity Bank Plc 8,500 847,366,209 4.01

8 Guaranty Trust Bank Plc. 22,854 806,752,179 3.82

9 Diamond Bank Plc 7,040 752,777,150 3.56

10 Skye Bank Plc 6,752 568,194,751 2.69

11 Dangote Sugar Refinery Plc 5,727 491,386,264 2.32

12 Linkage Assurance Plc 377 476,520,229 2.25

13 Sterling Bank Plc. 4,175 469,999,121 2.22

14 Unity Bank Plc 2,219 462,339,332 2.19

15 Ecobank Transnational Incorporated 4,339 458,301,175 2.17

16 First City Monument Bank Plc. 5,347 443,960,733 2.10

17 N.E.M Insurance Co (Nig) Plc. 1,780 418,047,824 1.98

18 Livestock Feeds Plc. 892 314,415,233 1.49

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19 Aiico Insurance Plc. 4,291 276,685,612 1.31

20 Mansard Insurance Plc 511 244,402,829 1.16

Top 20 total 161,831 16,481,340,120 77.97

Other 146 equities 103,803 4,655,651,943 22.03

Total Equities Traded 265,634 21,136,992,063 100.00

MARKET CAPITALIZATION

The market closed the fourth quarter and the year 2012 with 256 listed securities and Market Capitalization of N14.80 trillion. As at end of the third quarter, the number of listed securities stood at 259 with Market Capitalization of N13.841 trillion. The figure for the fourth quarter therefore indicated an increase of N959 billion (6.93%) when compared to the 3rd quarter. However, it was lower than an appreciation of N1.443 trillion (11.64%) recorded in the third quarter.

A look at the component of the total Market Capitalization showed that equities performance was compared to the 2nd quarter as Market capitalization closed at N8.978 trillion for an appreciation of 8.35%, debt capitalization was up by 4.81% to close at N5.821 trillion from N5.554 trillion, while market value of the ETF ended at N1.013 billion from N1.079 billion to record a decline of 6.12%. In the preceding quarter, equity, Debt and ETF capitalizations appreciated by 20%, 1% and 8% respectively. Table 12 below gives a sector by sector breakdown of Market Capitalization including number of listed securities as at December 2012.

TABLE 12: SECTORAL MARKET CAPITALIZATION AS AT DECEMBER 31, 2012

Sector

Listed

Securities

Market Capitalization

(Naira)

% Of Total Capitalization

ASeM

Construction/Real Estate 1 66,600,000.00 0.00045

Consumer Goods 2 193,527,121.35 0.00131

Healthcare 1 12,449,425.00 0.00008

Industrial Goods 1 203,758,557.50 0.00138

Natural Resources 1 3,325,000.00 0.00002

Oil & Gas 4 3,000,181,857.54 0.02027

Services 1 525,750,160.52 0.00355

Sub-total 11 4,005,592,121.91 0.02706

MAIN BOARD

Agriculture 5 40,609,786,661.92 0.27437

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Conglomerates 6 106,881,865,330.00 0.72213

Construction/Real Estate 10 130,365,895,365.52 0.88079

Consumer Goods 27 2,857,577,046,785.46 19.30672

Financial Services 56 3,048,916,817,450.35 20.59947

Healthcare 10 54,298,997,887.14 0.36686

ICT 12 64,412,619,527.98 0.43519

Industrial Goods 26 2,459,194,855,326.47 16.61512

Natural Resources 5 7,784,836,522.75 0.05260

Oil & Gas 10 147,524,965,453.13 0.99673

Services 20 56,880,832,731.81 0.38431

Sub-total 187 8,974,448,519,042.53 60.63430

EQUITY (TOTAL) 198 8,978,454,111,164.44 60.66136

ETFs

NewGold ETF 1 1,012,800,000.00 0.00684

1 1,012,800,000.00 0.00684

DEBT SECURITIES

Federal Government Bonds 25 4,080,043,859,000.00 27.56610

Sub-National Bonds 13 341,000,000,000.00 2.30391

Corporate Bonds/Debentures 19 1,400,433,626,857.00 9.46179

DEBT (TOTAL) 57 5,821,477,485,857.00 39.33180

OVERALL 256 14,800,944,397,021.40 100.00000

Source: Compiled from The NSE reports

Top Twenty (20) Companies by Market Capitalization: Only UACN Plc, which occupied the 18th position in the third quarter, could not make it to the table of the twenty top companies by capitalization. Diamond Bank Plc moved from 22nd position in the third quarter to join the league at the 19th position. With the exception of the first four (4) companies on the 7th, 8th, 13th and the 17th positions, all others switched positions during the quarter under review.

Market Capitalization of the top twenty (20) companies, stood at N7.717 trillion, representing 85.95% of total equities Market Capitalization. The capitalization of the other 178 listed equities was just 14.05% of total equity Market Capitalization.

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Table 13: TOP TWENTY (20) COMPANIES BY MARKET CAPITALIZATION AS AT DECEMBER 31, 2012

Rank

Equity Market Capitalization

(Naira)

% of Equity

Market

Capitalization Q3 Q4

1 1 Dangote Cement Plc 2,182,888,998,580.50 24.31

2 2 Nigerian Breweries Plc. 1,111,717,551,504.00 12.38

3 3 Guaranty Trust Bank Plc. 676,917,122,152.00 7.54

4 4 Zenith Bank Plc 611,917,663,889.14 6.82

6 5 Nestle Nigeria Plc. 554,859,376,400.00 6.18

5 6 FBN Holdings Plc 512,976,366,076.32 5.71

7 7 Guinness NigPlc 405,604,517,725.00 4.52

8 8 Access Bank Plc. 207,138,675,875.90 2.31

10 9 Unilever Nigeria Plc. 175,923,275,625.00 1.96

9 10 Lafarge Wapco Plc. 175,683,648,234.12 1.96

12 11 Flour Mills Nig. Plc. 151,760,497,785.00 1.69

11 12 U B A Plc 150,395,127,300.96 1.68

13 13 Ecobank Transnational Incorporated 149,461,672,484.81 1.66

15 14 Union Bank Nig.Plc. 124,478,177,561.85 1.39

16 15 P Z Cussons Nigeria Plc. 111,173,357,260.00 1.24

14 16 Stanbic IBTC Holdings Plc 110,000,000,000.00 1.23

17 17 Cadbury Nigeria Plc. 90,746,456,640.00 1.01

19 18 Dangote Sugar Refinery Plc 72,000,000,000.00 0.80

19 Diamond Bank Plc 71,507,700,938.70 0.80

20 20 First City Monument Bank Plc. 70,169,516,370.00 0.78

Top 20 Market Capitalization 7,717,319,702,403.30 85.95

Other 178 Equities 1,261,134,408,761.14 14.05

Equity Market Capitalization 8,978,454,111,164.44 100.00


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THE ALL-SHARE INDEX

The upsurge in prices of equities, which was witnessed in the third quarter following the commencement of market making activities, was sustained in the fourth quarter. However, the improvement recorded in the fourth quarter was lower than the level in the third quarter. While the All-share Index appreciated by 20.43% in the third quarter, it only gained 7.95% in the fourth quarter to end at 28,078.81 points from 26,011.64 points. Year-to-date (YTD), the index gained 35.45%.

Table 14 below captures the starting, high, low, and end points of the index between October and December 2012. The upbeat in September ran through to the second week of October, when the index closed at over 27,000 points. The index precisely recoded YTD growth of 32.03% on 11th of October before it started declining. The market remained sluggish and volatile between middle of October and the whole of November. On monthly basis, ASI gained marginally by 1.61% and 0.24% in October and November respectively while it appreciated significantly by 5.98% in December.

TABLE 14: NSE ALL-SHARE INDEX MOVEMENT (OCTOBER – DECEMBER, 2012)

Date Index

(Points) YTD% Remark

28/09/12 26,011.64 25.47 End point of Q3, 2012

02/10/12 26,023.10 25.53 Opening of the month/Quarter & Lowest point in the month/Quarter

11/10/12 27,371.30 32.03 Peak point of the month

31/10/12 26,430.92 27.50 Closing point of the Month

01/11/12 26,559.55 28.12 Opening point of the month

07/11/12 26,792.27 29.24 Peak point of the month

27/11/12 26,226.25 26.51 Lowest Point of the Month

30/11/12 26,494.44 27.80 Closing point of the Month

03/12/12 26,380.68 27.25 Opening point/ Lowest point of the Month

31/12/12 28,078.81 35.45 Closing point/Peak Point of the month/Quarter

Source: Compiled from The NSE reports

As shown on the chart below, ASI and Equity Market Capitalization rose steadily in the first two weeks in December after a sluggish movement between second week of October and the end of November. Profit taking activities slowed the indices down few days before the Christmas break. After the break, the market witnessed upward trend till the last trading day of the year, when the index closed at 28,000 points.

17


All-Share Index and Equity Market Capitalization (October – December, 2012)

Note: Equity Market capitalization for main board only

The NSE de-listed four (4) companies, the delisted companies were, Hallmark Paper Products Plc, Confidence Insurance Plc, Abplast Products Plc and Udeofson Garment Factory Nig. Plc for failing to meet its listing requirements. This brings the number of listed companies to 198 from 202 in the third quarter.

PRICE PERCENTAGE GAINERS AND LOSERS

A review of the prices of listed equities as at end of the fourth quarter compared to the third quarter showed that there were fifty five (55) gainers, forty eight (48) losers and ninety five (95) static prices. In the third quarter, the market recorded fifty eight (58) gainers, forty seven (47) losers and ninety seven (97) static prices.

Gainers: Table 15 below captures the top 10 percentage price gainers in the quarter. The share price of the top gainer, Airline Services & Logistics Plc, appreciated by 92.63% to close the quarter at N4.18 per share from N2.17 per share. DN Meyer Plc recorded a gain of 46.23% to again occupy the second position, as in the third quarter with a gain of 103.85%. Other companies on the top five (5) gainers list were Diamond Bank Plc (43.19%), National Salt Co. Nig. Plc (38.65%) and Skye Bank Nigeria Plc (35.22%).

A look at the price appreciations recorded by the remaining 45 gainers in the quarter showed that they ranged from 1.33% to 24.81%.

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TABLE 15: TOP TEN (10) PERCENTAGE PRICE GAINERS IN FOURTH QUARTER OF 2012

S/N Equity

Price on 28/09/12

(Naira)

Price on 31/12/12

(Naira)

Absolute Gain

(Naira)

(%)

Gain

1 Airline Services And Logistics Plc 2.17 4.18 2.01 92.63

2 DN Meyer Plc. 1.06 1.55 0.49 46.23

3 Diamond Bank Plc 3.45 4.94 1.49 43.19

4 National Salt Co. Nig. Plc 5.77 8.00 2.23 38.65

5 Skye Bank Plc 3.18 4.30 1.12 35.22

6 Fidelity Bank Plc 1.76 2.29 0.53 30.11

7 Portland Paints & Products Nigeria Plc 3.46 4.36 0.90 26.01

8 Julius Berger Nig. Plc. 27.50 34.65 7.15 26.00

9 Nigerian Bags Manufacturing Co.Plc 1.91 2.40 0.49 25.65

10 Glaxo Smithkline Consumer Nig. Plc. 36.00 45.10 9.10 25.28

Source: Compiled from The NSE Reports

A review of the prices in terms of Naira gains showed that a few blue-chip companies recorded appreciable increase in their unit prices during the quarter. For instance, Nestle Nigeria Plc gained N120 to close at N700 per share, Guinness Nigeria Plc added N15.00 to close at N275.00 per share and Nigeria Breweries Plc ended at N147.00 per share with an appreciation of N10.00 in the quarter. Other companies with gains of above N5.00 included Okomu Oil Palm Plc (N5.49), Dangote Cement Plc (N5.10) and Cadbury Nigeria Plc (N5.05).

Losers: With price declines of 30% and above, John Holt Plc, Morison Industries Plc, Cutix Plc and Arbico Plc topped the losers chart in the fourth quarter, as shown on Table 16 below. Two among these companies, Arbico Plc and Morison Industries Plc topped the losers list in the third quarter with declines of 57.90% and 27.38% respectively.

The range of declines of the remaining 38 losers was from 1.20% to 17.78%.

TABLE 16: TOP TEN (10) PERCENTAGE PRICE LOSERS IN FOURTH QUARTER OF 2012

S/N Equity

Price on 28/09/12

(Naira)

Price on 31/12/12

(Naira)

Absolute Loss

(Naira)

Loss

(%)

1 John Holt Plc. 5.32 3.40 1.92 36.09

2 Morison Industries Plc. 5.19 3.47 1.72 33.14

3 Cutix Plc. 2.21 1.53 0.68 30.77

4 Arbico Plc. 9.88 6.91 2.97 30.06

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5 IPWA Plc 0.70 0.50 0.20 28.57

6 MRS Oil Nigeria Plc. 32.29 23.76 8.53 26.42

7 Forte Oil Plc. 10.50 7.73 2.77 26.38

8 Evans Medical Plc. 1.15 0.87 0.28 24.35

9 Ikeja Hotel Plc 1.04 0.80 0.24 23.08

10 R T Briscoe Plc. 1.86 1.52 0.34 18.28

Source: Compiled fromThe NSE Reports

In absolute naira terms, the top three losers were Total Nigeria Plc (N9.43), Mobil Oil Nigeria Plc (N5.75) and Northern Nig. Flour Mills Plc (N3.10).

MONITORING AND INVESTIGATION

A: MONITORING DIVISION

20


Prudential Supervision

During the period under review, the following activities took place:

OFF-SITE INSPECTION

Broker/Dealer Operations

The Commission extracted data on 226 broker/dealer returns for the third quarter 2012 compared to the 228 returns analyzed for the second quarter 2012. (The next edition will feature 4th Quarter 2012). The table below shows the comparison of key indicators for the third and the preceding quarters:

*Please note that in order to ensure consistency and comparability in the broker/dealer sector analysis, two

Major indices ( Total Assets and Shareholders’ Funds were adjusted to reflect the effect of the diminution in value of quoted securities).

The overall performance of Broker/Dealer Firms in the third quarter ended September 30, 2012. It showed that the aggregate Shareholders’ Funds increased marginally by about N206.92million when compared with the second quarter of 2012, representing a 0.47% increase, most likely from the effect of return to profitability by firms which posted aggregate profitability of N190million as against an aggregate reported loss of N1.11billion of the preceding second quarter. This was complemented by increase in the aggregate values of Cash & Short Term Funds, and “Other Assets”.

S/N INDICATORS Q3''12 Q2 “12 Increase/ (Decrease)

%Change

=N= bn =N= bn =N= bn %

1 *Aggregate Shareholders’ Funds 43.95 43.74 206.92 0.47

2 Aggregate Indebtedness to banks 52.19 53.41 (1.22) (2.28)

3 Aggregate Cash & Short term funds 18.90 16.43 2.47 15.03

4 Aggregate Fixed Assets 27.26 27.38 (0.12) (0.44)

5 Aggregate Total Liability 144.74 155.88 (11.14) (7.15)

6 Aggregate Other Assets 39.03 33.98 5.05 14.86

7 Aggregate Investment in quoted securities 57.94 65.60 (7.66) (11.68)

8 Aggregate Unquoted Investment 34.60 41.06 (6.46) (15.73)

9 Aggregate Loans to clients 10.98 15.16 (4.18) (27.57)

10 Level of Profitability (Net) 0.19 (1.11) 1.30 117.12

11 *Aggregate Total Assets 188.69 199.62 (10.92) (5.47)

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As a result of reversal of aggregate reported loss to profitability and resultant salutary effect on Shareholders’ Fund, aggregate level of gaining in the sector declined by 4.86% from 67.72% as at the end of the second quarter to 62.86% at the end of the third quarter.

On the other hand, the aggregate level of indebtedness to banks decreased by 2.28%, while the aggregate loans to clients (representing 4.82% of Total Assets) decreased by 27.57% from the previous quarter. It can be deduced from the foregoing even though the decline in these two indices were not on the same scale, the Broker/Dealer firms were able to recover some of their outstanding advances to their clients and also reducing their debt profiles with Banks. There was also a decrease in the Total Liability by about 7.15% from the previous quarter indicating an improvement even if marginal.

The Aggregate value of Fixed Assets declined marginally by 0.44% from the second quarter. Aggregate value of investment in quoted securities also declined by 11.68%. Investment in unquoted securities declined from N41.06 billion to N34.60 billion in the quarter under review. However, investment in “other assets” classes increased by approximately 15% from N34billion to N39billion. The decline in the Quoted and Unquoted Equity Securities’ investment when compared with the increase in cash & short term funds, increased investment in Other Assets and the decrease in total liability and indebtedness to banks indicated that the Broker/Dealers liquidated some investments to reduce outstanding liabilities, while also reinvesting part in Other Asset classes. This was further evidenced by the decrease in Total Assets from N199.62billion in the previous quarter to N188.69 billion in the third quarter, showing a 5.47% decrease.

Investments in quoted equities remain the highest proportion of sectors aggregate constituting 25.42% (a decline of approximately 3% from the preceding quarter proportion of 28.33%).

Investment in Unquoted Equities, Other Assets, Fixed Assets and Loans to Firms’ Clients constituted 15.18%(down by 3% from second quarter ), 17,12% (up by 2.45%from quarter 2) and 4.82% (down by 1.68% from quarter 2) proportion of Total Assets respectively.

Cash and Short Term Funds represented 8.29% of Total Assets, an increase of 1.2% from the preceding quarter proportion of 7.1%.

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Fund/Portfolio Management Operations

A total of 90 Fund/Portfolio Management returns were analyzed for third quarter, 2012. The aggregate performances of these firms are highlighted below:

Q3” 11 (N’Bn)

Q2 “12 (N'Bn)

Q3''12 (N'Bn)

Qtr% ∆ Year on Year % ∆

Total shareholders’ funds 484.0 586.6 628.3 7.11 29.8

Total fund under management 250.63 251.3 308.5 22.76 23.1

Investment in the capital market 148.5 157.1 174.1 10.82 17.24

Investment in other asset classes 100.03 86.7 128 47.64 28.0

23


Uninvested funds 8.1 7.5 7.3 (2.67) (9.88)

% of Investment in the capital market to Total fund under management

59.3% 62.50% 56.40%

% of Investment in other asset classes to Total fund under management

39.95 34.50% 39.40%

% of Uninvested funds to Total fund under management

3.23% 3.10% 0.80%

Both on a Quarterly and Yearly, increases were recorded with regards to key indicators under the Fund Management sector with exclusion of the 10% decline in value of Uninvested Funds in the quarter compared to the previous year figure.

In proportionate terms, Investment in Quoted Equities remained the preferred choice of fund managers as on average, it accounted for 59.3% of Total Fund Under Management within the 3 periods of assessment.

Investment in Other Asset Classes accounted on average for 38% of Total Funds under Management, while Uninvested Funds made up 3% of Total Funds.

24


Trustees

Seventy-Four (74) returns were received and reviewed from Market Operators registered under Trusteeship function with an aggregate shareholders’ fund of N57.9bn as at September 2012. This was a 23.71% increase from the previous quarter’s aggregate shareholders’ fund of N46.8b. This is shown in the chart below:

Ten (10) active operators in the Market acted as trustees to Sixteen (16) State government bonds and Seven (7) corporate bonds valued at N488bn (representing 82% of the total value in issue) and N107.69 (representing 18% of the total value in issue) respectively. This is shown in the chart below:

25


Registrars

Seventy One (71) returns were received from registrars during the period under review. The returns showed that the quantum of unclaimed dividends had increased by 67.5% from N39.4bn as at September 2011 to N66bn as at September 2012 as shown below: Sep. 2011 Sep. 2012 % Change

Unclaimed Dividend*

N39.4bn*

N66 bn*

67.5%

Surplus/Returned Monies N1.14bn N1.234bn 7.9%

Unclaimed Share Certificates 966,775 741,758 -23.3%

*Unclaimed Dividend Figures are based strictly on unclaimed dividend reported after 6months of declaration by the Companies.

26


Issuing House For the quarter ended September, 2012 a total of Seventy-Five (75) issuing houses submitted their quarterly returns to the Commission. More than 60% of Issuing Houses submitted zero returns for the period under review. Sixteen (16) Issuing Houses as at September 2012 were active as shown below:

Status June 2012 September 2012

Issuing House Active 18 16

Non-Active 50 59

Total 68 75

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Underwriters Nineteen (19) registered underwriters rendered their quarterly returns for the quarter ended September, 2012 as against the Twenty-One (21) that submitted in the second quarter (June, 2012). The returns revealed that there were three (3) active underwriters in the Market as shown below:

Status June 2012 September 2012

Underwriters Active 3 3

Non-Active 18 16

Total 21 19

Utilization of Issue Proceeds

Seventy-Two (72) returns on utilization of Issue proceeds were reviewed in line with the Commission’s regulatory mandate which required effective monitoring of the use of issue proceeds by issuers of securities. Following the review, the underlisted issuers were found to have fully utilized the proceeds and thus slated for an on-site verification inspection:

i. Tower Founding Plc – Offer for Subscription of N4.63 billion (Series 1) Bond due in 2018

ii. First Bank of Nigeria Plc – N250 billion Hybrid Offer of 2007 iii. Benue State Government – N13 billion 14% fixed rate bond 2009-2014.

Anti – Money laundering/Counter Financing of Terrorism Activities

• AML/CFT Risk Based Supervision Pursuant to the successful migration from Rule based supervision to AML/CFT Risk-based supervision, the Commission inspected Seventy Two (72) CMOs, Sixty Eight (68) broker dealers controlled 80% of the Capital Market transactions and Four (4) funds/portfolio managers) to test run the process using the new Template developed with the assistance of IMF.

• ANALYSIS OF WEEKLY RETURNS An average of 37 Capital Market Operators submitted weekly returns on the AML/CFT Foreign Exchange Transaction Reports (FTRs).

• 18TH GIABA PLENARY/TECHNICAL COMMITTEE MEETING OF THE INTER-GOVERNMENTAL ACTION GROUP AGAINST MONEY LAUNDERING AND COUNTER FINANCING OF TERRORISM IN WEST AFRICA (GIABA)

28


The Technical/Plenary Commission meetings was organized twice a year to discuss pertinent and emerging issues that would facilitate the implementation of robust Anti Money Laundering and Counter Financing of Terrorism (AML/CFT) measures in the region.

Accordingly, the Commission was represented at the 18th Plenary/technical Committee meeting of the GIABA which was held from November 19th -22nd, 2012 in Dakar, Senegal.

• BILLS TO AMEND MONEY LAUNDERING PROHIBITION ACT 2011 AND PREVENTION TERRORISM ACT 2011 In order to address key deficiencies in Nigeria’s AML/CFT regulation noted by the global body responsible for AML/CFT i.e. Financial Action Task Force (FATF), the Commission was among the Presidential Committee that amended the Money Laundering (Prohibition) Act 2011 and Prevention of Terrorism (Prohibition) Act 2011. The Commission was also at the public hearing by the Senate Committee on Drugs, Narcotics, Financial Crimes & Anti-Corruption, on the amendment of the two bills which was held on October 2, 2012. The Two (2) bills were harmonized by the two (2) chambers and forwarded to President Goodluck Jonathan for his assent.

Penalties

Penalties collected from Capital Market Operators for Late/Non-rendition of Quarterly and Annual Reports/Accounts amounted to N30,905,780 (Thirty Million, Nine Hundred and Five Thousand Seven Hundred and Eighty Naira)as at December 31, 2012.

B: INVESTIGATION DIVISION

In the Fourth quarter, a total of 496 correspondences were received from various Capital Market Operators and investors, while 501 correspondences emanated from the Division to operators and investors respectively.

STOCKBROKERS Out of the four hundred and ninety six (496) correspondences received, two hundred and seventy three (273) were with respect to stockbrokers. Find the breakdown below:

v New complaints - 60 v Correspondence on existing complaints - 213

Total - 273

The breakdown of the new complaints include:

29


Month Unauthorized/ fraudulent sale of shares

Non remittance of share sale proceeds

Refusal/ Illegal transfer of shares

Falsification of clients’ accounts

Non purchase of shares/ undue delay in the purchase of stocks

Grand Total

October 10 5 3 4 2 24

November 4 2 3 9 4 22

December 4 1 7 1 1 14

Total 18 8 13 14 7 60

REGISTRARS

Out of the Four Hundred and Ninety Six (496) correspondences received, Two Hundred and Fifteen (215) were with respect to Registrars. Find the breakdown below:

v New complaints - 58 v Correspondence on existing complaints - 157

Total - 215

The breakdown of the new complaints include:

Month Non-receipt of dividends warrants/ bonuses

Returned monies for un-allotted shares

Non verification of share certificates

Non issuance of share certificates

Wrong crediting bonus shares/non crediting & CSCS accrued

Grand Total

October 3 - 2 6 8 19

November 13 4 2 - 6 25

December 9 2 1 - 2 14

Total 25 6 5 6 16 58

MISCELLANEOUS

Also, out of the Four Hundred and Ninety sIx (496) correspondences received, eight (8) were with respect to Miscellaneous. Find the breakdown below:

Month Miscellaneous (complaints against Capital Market Operators other than Stockbrokers and Registrars)

Total

October 3 3

30


November 1 1

December 4 4

Total 8 8

RESOLVED AND CLOSED CASES

A total of Two Hundred and Sixty Nine (269) cases were resolved and closed during the 4th quarter of 2012. Find the breakdown below:-

STOCKBROKERS – Breakdown by nature of complaints

PERIOD NATURE OF COMPLAINTS NUMBER OF CASES RESOLVED AND CLOSED

TOTAL

October Unauthorized/ fraudulent sale and purchase of shares

3

6

Non remittance of share sale proceeds -

Refusal/Illegal transfer of shares

1

Falsification of clients’ accounts 1

Non purchase of shares/undue delay in the purchase of stocks

1

Non verification of share certificates -

November Unauthorized/ fraudulent sale and purchase of shares

2

12

Non remittance of share sale proceeds 2


3



1

Non verification of share certificates 1

December Unauthorized/ fraudulent sale and purchase of shares

9

Non remittance of share sale proceeds 3


-


31



2 22

Non verification of share certificates 3

Grand Total 40 40

REGISTRARS – Breakdown by nature of complaints

PERIOD NATURE OF COMPLAINTS NUMBER OF CASES RESOLVED AND CLOSED

TOTAL

October Non-receipt of dividends warrants/bonuses

1

2


-


1


-

Falsification of account/unethical conduct -

November Non-receipt of dividends warrants/bonuses

15

104


25


12


2

Falsification of account/unethical conduct/Non receipt of share certificate

50

December Non-receipt of dividends warrants/bonuses

84

113


4


12


10

Falsification of account/unethical conduct 3

Grand Total 219 219

MISCELLAENOUS Miscellaneous (complaints against Capital Market Operators other than Stockbrokers and Registrars)

PERIOD NATURE OF COMPLAINTS NUMBER OF CASES RESOLVED

GRAND TOTAL

October Margin facility 1 1

32


November Margin facility/Non refund of fund 3 3 December Margin facility/Non refund of fund 6 6 Total 10 10

CASES FORWARDED TO ENFORCEMENT & COMPLIANCE (E&C) DEPARTMENT

During period under review, Thirty-Six (36) case files were forwarded to E&C Department of the Commission for enforcement actions.

1. SPDC West Multipurpose Cooperative Society Vs. Transglobe Investment & Finance Ltd

2. Complaint on the activities of fund managers (wonder bank) by Delaw Chambers 3. Re-Nospecto Oil & Gas Ltd RC460739 breach of contract/money swindling by

Chief Agboola Adeyemo JP 4. Mamuda Victoris Vs. Wealth Force Investment Company Ltd on non receipt of

share certificate/return money 5. Olayinka A. Michael Vs. Credrnce Investment Ltd 6. Adesopi Akanni Vs. Gold Power Unique Service & Silver Trust Ltd – Refund of

payment to depositors of defunct Wonder Banks for year 2007 7. Chinedu Nwagwu Vs. Proforte Ltd 8. Realistic Global Resources Vs. Musa Felix Bari 9. L&Sylver Resource Investment Vs. Musa Felix Bari 10. Financial crime by Ladidi M. Kowain, Yusuf Umbugadu & 23 others (Appointed

agents) against Realistic Global Resource Vs. Shanding Danboyi & Company 11. Viscom Business Venture Vs. Musa Felix Bari 12. Philip Moses Tachia Vs. My Wise Investment (WISCOM) 13. Philip Moses Tachia Vs. Guarantee Global Resources 14. Philip Moses Tachia Vs. Realistic Global Resources Ltd 15. Access Investment Nigeria Ltd Vs. Guarantee Global Resources 16. Ikenga Kalu Emeghe Vs. consolidated Investment Ltd 17. BIC Securities Ltd (illegal operator) 18. Davou Ishaya Jatau Vs. Eazytrade Concepts Ltd 19. Appeal for the payment of principal sum on contract agreement with Proforte Ltd 20. Akala Moses Olusola Vs. Nospetco Oil & Gas Ltd 21. M.O. Ogundele & Ors. Vs. Mr. Ayo Komolafe & Mrs. Olaleye Olayinka 22. Mr. Sunday Odufuwa Vs. Cashflow Abi Network 23. Mrs. Ruth Bature Vs. Cashflow abi Network 24. Mrs. Ewetayo Olubanke Ololade Vs. Cashflow Abi Network 25. Oguntade Simeon Adeokun Vs. Omas investment & Trust Ltd 26. Albert Olakunle Apara Vs. Omas investment & Trust Ltd 27. Mr. Okoye Vincent Amaechi Vs. Omas investment & Trust Ltd 28. Prove Securities Ltd Vs. Omas investment & Trust Ltd 29. Mr. Victor Okoye Vs. Omas investment & Trust Ltd 30. Igene Benedy Ogbolo Vs. Omas investment & Trust Ltd 31. Onwuka A. kalu Vs. Omas investment & Trust Ltd 32. Sylvia Kanebi Obi Vs. Omas investment & Trust Ltd 33. Hon. Dr. Funmi Awojinrin Vs. Omas investment & Trust Ltd 34. D.R. Horsfall Vs. Omas investment & Trust Ltd 35. Yomi Anenih(Mrs.) Vs. Lighthouse Asset Management Ltd

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36. Amos Onyia Vs. Proforte Ltd

ALL PARTIES MEETING As one of the disputes resolution mechanisms adopted by the Commission in resolving complaints, Two (2) all parties meeting were held during the quarter. S/N NAME OF PARTIES NATURE OF COMPLAINT DATE REMARKS

1. Inne Global Service Ltd (William Gankon & Co) Vs. First Stockbrokers Ltd

Complaint on transaction on Sunshine Tower Project

October 11, 2012 The parties appealed for settlement within 1 week Awaiting resolution.

2. Mr. Felix A. Oshobe

(Thompson Okpoko & Partners) Vs. First Stockbrokers Ltd

Complaint on transaction on Sunshine Tower Project

October 11, 2012 The parties were absent from the meeting.

SUMMARY OF OUTSTANDING COMPLAINTS

Outstanding complaints brought forward as at September 30, 2012 - 700 Add: New Complaints 4th Quarter (Oct – Dec 2012) - 496

Total complaints as at 4th Quarter - 1,196

Less: Complaints forwarded for enforcement to E&C Dept. (Oct – Dec 2012) 36

Complaints Resolved October – December, 2012 - 269

Total complaints resolved/closed and forwarded to E&C Dept. - 305

Total outstanding complaints as at December 31, 2012 - 891

34


SECURITIES AND INVESTMENTS SERVICES

INVESTMENT

During the period under review, the following activities took place:

MERGERS

1. PROPOSED MERGER OF PLANET CAPITAL LIMITED, EMERGING CAPITAL LIMITED AND STRATEGY AND ARBITRAGE LIMITED The Commission received an appliction for the Merger of Planet Capital Limited, Emerging Capital Limited and Strategy and Arbitrage Limited jointly filed by Finmal Services Limited, PanAfrican Capital Plc and Globano Managements Associates Limited. The application was granted “approval in Principle” to enable them hold a Court Ordered Meeting and observed deficiency was communicated to the financial advisers. When the transaction is approved, the new name of the company will be Planet Capital Limited.

PENDING MERGER APPLICATIONS

2. PROPOSED MERGER BETWEEN CONSOLIDATED BREWERIES AND BENUE BREWERY LTD The transaction filed by Stanbic IBTC Bank PLC was part of a wider restructuring and repositioning of Consolidated Breweries’ interests in other entities and would be consummated with shares in the enlarged entity. Under the arrangement, the assets, liabilities and undertakings of Benue Brewery Ltd would be transferred to Consolidated Breweries, while Benue Brewery Ltd would be dissolved without winding up. The scheme document was cleared on December 17, 2012. 3. PROPOSED MERGER BETWEEN CUSTODIAN AND ALLIED INSURANCE PLC AND CRUSADER (NIG) PLC

The scheme document for the proposed merger of Custodian & Allied Insurance Plc and crusader (Nig) Plc filed by Chapel Hill Advisory Services was cleared during the quarter. The Merger involved the transfer of all assets, liabilities and undertakings including real property rights of Crusader (Nig.) Plc will be cancelled and the company would be dissolved without winding up. The majority shareholders of the company would however be allocated 8 ordinary shares of Custodian and Allied Insurance Plc in exchange for every 34 shares of Crusader (Nig.) held. The scheme document was cleared on 21/12/12.

35


4. PROPOSED SCHEME OF MERGER AMONG FLOUR MILLS OF NIGERIA PLC, NIGERIAN BAG MANUFACTURING COMPANY PLC, AND NORTHERN BAG MANUFACTURING LIMITED The transaction was filed by FCMB Capital Market, Zenith Bank Plc and Stanbic IBTC Bank on behalf of the Companies. It involved the Merger between Flour Mills Nigeria Plc, Nigerian Bag Manufacturing Company Plc and Northern Bag Manufacturing Company. The scheme document was cleared on December 13, 2012.

5. PROPOSED MERGER BETWEEN CADBURY NIGERIA PLC AND STANMARK COCOA PROCESSING COMPANY The transaction was filed by Stanbic IBTC Bank Plc on behalf of the merging entities on 26/06/2012. The assets, liabilities and undertakings of Stanmark would be transferred to Cadbury and Stanmark would be dissolved without being wound up. Stanmark Cocoa processing Company Limited owned 99.34% subsidiary of Cadbury. Scheme document was cleared on December4, 2012.

6. PROPOSED SCHEME OF MERGER BETWEEN CORNERSTONE INSURANCE PLC AND LINKAGE ASSURNACE PLC The transaction was filed by FCMB Capital Markets Limited Cordros and Financial Advisers to the transaction. It involved the transfer of all assets, liabilities and undertaking including real properties and property rights of Linkage to Cornerstone. The entire share capital of Linkage would be cancelled and Linkage would subsequently be dissolved without being wound-up. In consideration for the transfer, Linkage shareholders would be entitled to 30% shareholding in the post merger Cornerstone. A deficiency letter was sent to the Financial Advisers on 5th September, 2012.

7. WAPIC INSURANCE INTERCONTINENTAL PROPERTIES LIMITED The transaction was filed by BGL Plc on 7th August, 2012. The proposal was to combine WAPIC Insurance and Intercontinental Properties into a single legal entity via scheme of merger pursuant where: a. All the assets, liabilities and undertakings including real and intellectual property rights of Intercontinental Properties would be transferred to WAPIC Insurance; b. In consideration for the transfers, all shareholders of Intercontinental Properties would receive shares in WAPIC Insurance in exchange for their shares in Intercontinental Properties; and c. The entire share capital of Intercontinental Properties would be cancelled and dissolved without winding up. Executed Scheme and other documents were submitted and documents were reviewed.

36


8. PROPOSED MERGER BETWEEN TIDDO SECURITIES LIMITED AND TIDO INVESTMENT MANAGEMENT LIMITED

The application was a merger between Tiddo Securities Limited and Tiddo Investment Management Limited. It was proposed that all liabilities and undertakings, including real property and intellectual property rights of Tiddo Investment Limited would be transferred to Tiddo Securities Ltd. The application was filed by North Bridge Investment and Trust on 23rd May, 2011. A deficiency letter was forwarded to the financial adviser on 17th December 2012.

9. PROPOSED MERGER BETWEEN FLOUR MILLS OF NIGERIA AND NIGER MILLS COMPANY LIMITED.

The transaction was filed by Chapel Hill Advisory Partners ltd. This would result in a consolidation of both companies and would be achieved through the transfer of all assets, liabilities and undertakings of Niger Mills Limited to Flours Mills Nigeria Plc., for a cash consideration in lieu. The entire issued share capital of Niger mills would be cancelled and Niger mills would be dissolved without winding up. A memo was prepared and forwarded for Management approval to clear the Scheme.

APPROVED MERGER TRANSACTIONS

1. MERGER BETWEEN OLD MUTUAL NIGERIA LIFE INSURANCE COMPANY LIMITED (“OMNILIC”) AND OCEANIC LIFE ASSURANCE LIMITED

The transaction was filed by Chapel Hill Advisory Partners Limited and Oceanic Capital Company Limited. The proposed merger was driven by the need for old OMNILIC to establish its presence in Nigeria and provide it with the required life insurance license to carry out its operations in Nigeria.

ACQUISITION

A total of five (5) new applicationns in respect of acquisition transactions were received, while 12 where granted approval during the quarter, the details are as below:

NEW APPLICATIONS

1. PROPOSED ACQUISITION OF 95% OF OCEANIC HEALTH MANAGEMENT COMPANY BY ALPHA PARTNERS LIMITED HELD BY CRECCIDA NIGERIA LTD FOR ECOBANK TRANSNATIONAL LTD.

37


Oceanic capital Ltd and Gold Bank Management Associate acted as ‘Financial Advisers’ on the proposed acquisition of 95% equity stake in Oceanic Health Management Company by “Cressida Nigeria Plc” a special purpose vehicle owned by Ecobank Transnational. The application was however observed to be deficiet and that was communicated to the financial advisers accordingly.

2. APPLICATION FOR THE ACQUISITION OF DIAMOND CAPITAL AND FINANCIAL MARKET LIMITED AND DIAMOND SECURITIES LIMITED BY FAIZEN PARTNERS NIGERIA LIMITED.

Kaizer Partners acquired Diamond Capital & Finance & Diamond Securities Ltd, from Diamond Bank. A deficiency letter was communicated to the financial adviser on the 13/12/12.

3. PROPOSED ACQUISITION OF 60% SHAREHOLDING OF FEMI JOHNSON PLC BY MMC GROUP.

The acquisition involved MMC’s acquisition of 605 shareholding of Femi Johnson Plc held by Afrinet Investment Proprietary Limited. A letter was sent to the Financial Adviser on 31/12/12

4. PROPOSED ACQUISITION OF 2,143,281,975 ORDINARY SHARES OF N1 EACH REPRESENTING 95% EQUITY IN SAVANNAH SUGAR COMPNAY LTD. BY DANGOTE SUGAR REFINARY. Dangote Sugar Refinery offered to buy 95% shareholding of Savannah Sugar Company from Dangote Industries Limited. The financial adviser had responded to the deficiency letter and the submitted documents under review.

5. ACQUISITION OF THAI FARMS INTERNATIONAL LIMITED BY FLOUR MILLS OF NIGERIA PLC The transaction was filed on October 29, 2012 by Primera Africa Fund Managers. The shareholders of the THAI Farms transferred 100% of their shareholding to Flour Mills of Nig. Plc which relates to entire issued Share Capital of 349,650,137 ordinary shares of 50 kobo each for a total consideration of 874,125,338 @2.50 per share. A deficiency letter was forwarded to the Financial Advisers on 2nd November 2012 due to incomplete filing.

OUTSTANDING TRANSACTIONS

1. ACQUISITION OF FUG PENSION BY UNITY KAPITAL

Unity Kapital Assurance Plc proposed to buy 550 million units of FUG shares from Unity Bank at N 1.10 per share paying a total of N660 million.

38


2.PROPOSED ACQUISITION OF ACEN INSURANCE COMPANY PLC BY SOVEREIGN TRUST INSURANCE PLC

The application was filed by Greenwich Trust Ltd and Morgan Capital Group. It involved the acquisition of the entire issued ordinary shares as well as assets and liabilities of ACEN Insurance Plc at the exchange rate of seven (7) ordinary shares of Sovereign Trust Insurance PLC for every 85 ordinary shares of ACEN Insurance. A letter of deficiency was forwarded to the Financial Adviser on 7/08/12 stating the reasons that were not acceptable by the Commission and that the transaction should be packaged appropriately as a merger or acquisition.

APPROVED ACQUISITION TRANSACTION

1. ACQUISITION OF SHARES IN PHB CAPITAL AND TRUST LTD BY APEL ASSET AND TRUST LTD The transaction was filed by Charles Musa & Co. for the acquisition of PHB Capital and Trust Limited by Apel Asset & Trust Limited. The transaction was approved on 18/12/12 2. ACQUISITION OF 100% SHARES OF WEMA REGISTRARS LTD BY CITADEL NOMINEES LTD The transaction was filed by Partnership Investment Co. Plc. The transaction involved the acquisition of 100% shares representing 50,000,000 ordinary shares of N1 each by payment of N50,000,000. Approved on 17/12/12 3. DIVESTMENT OF ACCESS BANKS 51.88% EQUITY STAKE IN INTERCONTINENTAL HOMES TO INTERREC LIMITED. In line with the CBN’s guideline in the repeal of Universal Banking license, Access Bank wanted to divest its 51.88% stake in Intercontinental Homes to Interrec Ltd. Transaction was approved on 17/12/12 4. ACQUISTION OF 3,167,716,667 ORDINARY SHARES OF 50 KOBO EACH TIGER BRANDS REPRESENTING 63.35% EQUITY STAKE IN DANGOTE FLOUR MILLLS (DLM) The transaction was filed on July 4, 2012 by Vetiva Capital Management Limited acting as Financial Adviser. Tiger Brand proposed to acquire 3,167,716,667 ordinary shares of 50 kobo in DFM from DIL for a cash consideration of N9.50k per share amounting to a total sum of N30,603,308.50. 5. ACQUISTION OF SAIDEL LIMITED BY SAIPEM INTERANTIONAL B.V The transaction was filed on 20th June, 2012 by Dama Afabor & Co Ltd on behalf of the Companies. It involved the acquisition of 490,000 units of shares Ltd originally held by Messr Udofia Akanimo to Saipen International B.V for a cash consideration of N490, 000. The transaction was granted approval on 13/7/12.

39


6. ACQUISITION OF 100% SHAREHOLDING IN ACCESS INVESTMENT AND SECURITIES LTD BY DUNN LOREN MERRIFIELD INVESTMENT COMPANY LTD The transaction was filed by G. Elias on behalf of the Companies. It involved the Acquisition of 100% shareholding in Access Investment and Securities Ltd by Dunn Loren Merrifield Investment Company 7. ACQUISITION OF UNITY INVESTMENT AND CAPITAL LIMITED BY ATERIOS CAPITAL LIMITED The above named transaction was filed by Tokunbo Orimobi LP, on behalf of the Companies on August 29, 2012. The Board of Directors of Unity Bank Plc approved the sale/transfer of its shareholding interest in one of its subsidiaries, Unity Investment and Capital Ltd, to Aterios Capital Limited. The purchase consideration was N 500,000,000 (Five Hundred Million) for the entire Ordinary Shares of UICL which translates to N1.12 per share.

8. ACQUISITION OF SKYE BANK PLC’S 1,800,000,000 ORDINARY SHARES OF 50 KOBO EACH AND SKYE BANK FINANCIAL SERVICES LIMITED’S 600,000,000 ORDINARY SHARES OF 50 KOBO EACH IN CRYSTALIFE ASSURANCE BY ASSET & RESOURCE MANAGEMENT LIMITED The transaction was filed by Vetiva Capital Management Limited on behalf of the Companies on 26th July, 2012. The transaction involved the acquisition by ARM of Skye Bank 31.11% and Skye Financial Services 10.37% equity stake in Crsytalife for a cash purchase consideration of the sum of One Billion, Eight Hundred and Ninety Six Million Naira (N 1, 896,000,000) at a per share price of N 0.79. 9. ACQUISITION OF THE ISSUED SHARES OF ESS INVESTMENT & TRUST LIMITED BY DUNN LORREN MERRIFIELD INVESTMENT COMPANY LIMITED The transaction was filed by G. Ellias & Co Solicitors and Advocates on 12/07/2012 on behalf of the Companies. It involved the Acqusiition of ESS’ Investments & Trust Limited’s 70,000,000 issued shares of 1.00 each at a purchase consideration of N72,000,000 (Seventy Two Million Naira) at N1.028 by Dunn Loren Merrifield banking group. 10. ACQUSIITION OF 90% SHAREHOLDING IN ROM OIL MILLS LIMITED BY FLOUR MILLS OF NIGERIA PLC The transaction was filed on July 6, 2012 by Chapel Hill Advisory Partners Limited as Financial Advisers. It involved the acquisition by Flour Mills of 90% equity share holding in ROM Oil with the acquisition being affected by way of the transfer of respective ordinary shares of ROM Oils by existing shareholders, representing 90% of

40


the Company’s issued share capital at a purchase consideration of N 1,494,171,509. Both Flour Mills and ROM Oil Mills would continue to operate as separate corporate entities. 11. SALE OF TRANSCORP METROPLOITAN HOTEL CALABAR (TMHC) TO TRANSACORP HOTEL AND TOURISM SERVICES LIMITED (THTSL) The transaction was filed on 12th June, 2012 by BGL Plc. It involved the purchase of the entire share capital of Metropolitan Hotel Calabar (TMHC) by Transcorp Hotels and Tourism Services Limited (THTSL). Transcorp, together with Transcorp properties Limited owns 100% of THMC agreed to sell the entire share capital comprising of 5,000,000 ordinary shares of N1. Each to THTSL for a total consideration of N 3,390,000,000. 12. ACQUISITION OF TDA CAPITAL MANAGEMENT LIMITED BY HALO AFRICA LIMITED The transaction was filed by Constant Capital Limited, the Financial Advisers to the transaction. It involved the acquisition of 60,070,000 (Sixty million, seventy thousand) shares of TDA Capital Management at a cash consideration of N15, 000, 000 (Fifteen Million Naira Only) RESTRUCTURING OUTSTANDING RESTRUCTURING TRANSACTION 1. PROPOSED BUSINESS COMBINATION BETWEEN EMERGING MARKETS TELECOMMUNICATION SERVICES AND ALHERI SERVICES LIMITED The transaction was filed by Cardinal Stone Partners and it involved business combination between Emerging Markets Telecommunication Services Ltd (EMTS) and Alheri Mobile Services Limited (AML). EMTS now owns AML. Awaiting response from the financial Adviser. APPROVED RESTRUCTURING TRANSACTION 1. SCHEME OF ARRANGENMENT FOR THE RESTRUCTURING OF FIRST BANK OF NIGERIA PLC UNDER A FINANCIAL HOLDING SERVICE HOLDING COMPANY

The transaction was filed by FBN Capital as the financial adviser to the transaction on 11/05/12. The transaction required that the shareholders of First Bank as at the Termianl date to surrender their shares in First Bank to FBN Holdings in exchange for the issuance of the same number of shares they held in First Bank. Subsequent to the Scheme, First Bank would transfer all of its shares in Holdco subsidiaries and IBAM

41


subsidiaries to FBN Holdings and FBN Capital Limited respectively. A no objection was granted on July 19, 2012.

2. UNBUNDLING OF NON-CORE BANKING ASSETS OF OCEANIC BANK INTERNATIONAL LIMITED INTO ECOBANK TRANSNATIONAL INCORPORATED AND OTHER MEMBER OF THE ECOBANK GROUP

Another transaction granted approval during the quarter was filed by Udo Udoma and Belo-Osagie. The Solicitors notified the Commission of the proposed transfer by the Bank the shares that currently hold in the non-core banking assets to ETI and its subsidiaries. 3. RESTRUCTURING OF TOTAL NIGERIA PLC The transaction was an internal reorganization which would result in a change of majority ownership in Total Nigeria Plc. The transaction involved the following members of the Total Group: v Total S.A & Elf Aquitance v Total Raffinage Marketing (TRM) v Total Nigeria Plc Total SA and Elf Aquitance would contribute 153, 600,000 and 55, 959, 630 ordinary shares of 50k each which they hold respectively in Total Nigeria to TRM. In consideration for the contribution of the Transaction Share to TRM, new shares of TRM would be issued and allocated to Total SA and Elf Aquitance.

4. DIVESTMENT OF UNITY BANK PLC FROM NON-BANKING SUBSIDIARIES The transaction was for the divestment of Unity Bank Plc from its non-banking subsidiaries, Unity Registrars Ltd, Northlink Insurance Brokers Ltd, Unity Bureau de Change Ltd, Canada Management Services Ltd, Hexalix Properties Ltd, Prints Ltd and also to sell Unity Investment and Capital Ltd to Aterios Capital Ltd. 5. SCHEME OF ARRANGEMENT FOR THE REORGANISATION OF CAPITAL BETWEEN TRANSNATIONAL CORPORATION OF NIGERIA PLC AND HOLDERS OF ITS FULLY PAID AND ORDINARY SHARES OF 50 KOBO EACH The transaction was filed by BGL Plc and UBA Capital Limited on 7th August, 2012 on behalf of the Companies. The transaction involved the reorganization of Capital between Transacorp Transnational of Nigeria Plc and Holders of its fully paid ordinary shares of 50 kobo each. The proposed reorganization would involve a transfer of N27,071,664,000 in the Share Premium Account with a view of off-setting the negative balance of N 25, 768, 702,000 in the latter account, thereby making it positive. 6. SCHEME OF ARRANGEMENT BETWEEN UBA PLC AND HOLDERS OF ITS FULLY PAID ORDINARY SHARES.

42


The transaction was filed by BGL Plc., Afrinvest Limited and UBA Capital limited, it involved the Scheme of arrangement between United Bank for Africa Plc. And holders of its fully paid Ordinary shares of 50k each and the registration of Africa Prudential Securities 1,000,000,000 Ordinary shares of 50k each and UBA Capital Plc. Ordinary shares of 50k each NOTABLE TRANSACTION

1. ACQUISITION OF NWS NIGERIA LIMITED BY OVALSITES LIMITED The transaction was filed by EJike Opara & Co on 14th August, 2012. It involved the acquisition of all assets and liabilities of NWS Nigeria Ltd by Ovalsites Ltd. Both Companies are small private companies with authorized and share capital of N2, 000, 000 and N1, 000, 000 each, paid N50, 000 processing fee.

2. PURCHASE AND ASSUMPTION OF LIFT MICROFINANCE BANK LIMITED BY LAPO MICROFINANCE BANK LTD The transaction filed by the LAPO MicrFinance Bank involved purchase and assumption of Lift Micro Finance Bank Limited by LAPO MFB. The (CBN) on June 21, 2010 approved the grant of Microfinance Bank License to LAPO Microfinance Bank Limited. The CBN also directed that LAPO Microfinance Bank Limited consolidate its operation with Lift Microfinance Bank Limited in view of the fact that LAPO NGO was the majority shareholder of Lift Microfinance Bank Limited.

3. RENAISSANCE CAPITAL BY ONEXIM GROUP Rencap Securities Ltd and Renaissance Securities Nig Ltd informed the Commission of the proposed acquisition of 100% stake in renaissance Securities Capital by Onexim Group. The proposed acquisition would not alter the shareholding of Rencap Securities Limited or its commitment to Nigeria.

OTHER TRANSACTIONS

1. CHANGE OF SHARE HOLDING STRUCTURE OF SKYE TRUSTEES LTD

Skye Trustees Limited wrote to the commission notifying them of change of structure of the company. The transaction involved acquisition of Skye Bank’s equity interest in Skye Trustees by Blue Ridge Capital.

STAGE OF THE PROCESSING A letter was sent to the parties on 5th December 2012 for the ratification of the transaction formally.

43


FINANCIAL STANDARD AND CORPORATE GOVERNANCE

v Half Yearly Return Reports

The Commission reviewed the half yearly returns form of Fifteen (15) quoted companies during the quarter. To determine companies’ compliance with the Code of Corporate Governance, CAMA and the Investment & Securities Act (ISA) 2007, the Commission confirmed to review their periodic returns during the quarter under review, 89 quarterly returns and 17 audited financial reports from various companies.

The following lapses were observed after the review.

o Late submission of returns which contravenes the provisions of the ISA, 2007 o Internal control breaches and lapses not properly communicated o Non- commencement of e-dividend filing and inadequate Board committees e.g.

Remuneration and Risk Management Committees. o Non certification of the return forms by officers concerned. o Audit committee not meeting with the Board and Internal Audit as required by

the Code of Corporate Governance. o Irregular Board meeting. o Engagement of External Auditors for a long period. o Notices of AGM sent to shareholders falling short of 21 days as required by the

Code of Corporate Governance. o Large number of staff disciplined during the period

The observed lapses were communicated to the companies, some of which had responded, while others were still being awaited. The lapses observed were communicated to the companies to serve as a guide to them in their subsequent submissions.

v Unclaimed Dividend

During the quarter, returns on un-claimed dividends totaling N 43,834,838,646.30 in the companies’ books as at December 2012 were received.

The top five companies with unclaimed dividend were:

First Bank Plc N 3,167,121,353.94 GTBank Plc N 5,699,861,957.28 Union Bank Plc N 5,661,027,194.27 Access Bank Plc N 3,456,912,623.58 Guiness Nigeria Plc N 4,452,710,099.87

44


1. INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) IMPLEMENTATION WORKSHOPS

A 6-Day meeting of the representatives of the World Bank and Institute of Chartered Accountants in England and Wales (ICAEW) was held with the Commission during the Quarter. The aim of the meeting was to agree on the scope of work in the previous quarter for the International Financial Reporting Standards (IFRS) training program proposed. The first phase of the IFRS training program which was sensitization workshop held between 3rd and 7th December 2012. The workshop is expected to aquint staff of the Commission on the rudements of the IFRS to ensure smooth regulation.

As at December 2012, 155 companies had signed up to the new Code of Corporate Governance indicating their willingness for the management of those companies to be guided by the code on the discharge of their duties.

12 companies held their AGMs in the 4th quarter and the Commission was invited to serve as observers. It is the Commission’s responsibilities to attend such meetings to ensure that the meetings were held in accordance to the code of corporate governance and shareholders.

Also to ensure that investors were not delibrately misguided, the Commission reviewed early forecast by companies. During the 4th quarter a total of 33 quarterly earings forecast were reviewed to defeat if there was any material variation.

45


COLLECTIVE INVESTMENT SCHEMES UNIT TRUST

Ø List of Applications for Registration & Authorisation Approved during the period under review were:-

o ARM Money Market Fund: Approval was granted to convene Completion Board Meeting.

o Stanbic IBTC Umbrella Fund: Approval was granted for registration and

authorization of 4,000,000 units of N1,000.00 each. o Vetiva NSE 30 Index Securities: Approval was granted to convene

Completion Board Meeting. o UPDC Real Estate Investment Trust: Approval was granted to convene

Completion Board Meeting.

Ø List of new Application received for Registration of Unit Trust Scheme during the period under review: -

o SFS Fixed Income Fund: This was an application for registration and authorization of 500,000,000 units of N1.00 each at par in the proposed Initial Public Offering (IPO) of the SFS Fixed Income Fund. The objective of the Fund was to achieve capital preservation of assets and maximize investment returns on capital employed, by investing in a diversified and selected portfolio of high quality bond securities and money market instruments.

Ø Applications under processing:-

1. Allan Gray Africa Equity Fund Limited: This was an application for

registration and authorization of a Foreign CIS soliciting investments in Nigeria. The Fund had an authorized share capital of US$12,000,000.00 divided into shares of US$1.00 each. As at June 30, 2012, the size of the Fund was US$223 million and the Fund price was US$157.01. The objective of the Fund was to invest in a focused portfolio of companies with significant business interests in Africa, regardless of the location of the stock exchange listing with the aim to outperform African equity markets over the long term without taking on greater

46


risk of loss using the MSCI Emerging and Frontier Markets (EFM) Africa Index as benchmark. Status – Currently under review.

2. Stanbic IBTC Iman Fund: This was an application for registration and authorization of a Shariah compliant portfolio of 2,500,000 units of N1,000.00 each in the Initial Placement of the Stanbic IBTC Iman Fund. The objective of the Fund was to achieve long-term capital appreciation of its assets by investing a minimum of 70% of the Funds assets in Shariah compliant equity securities as approved by the Shariah Advisory Council from time to time, and a maximum of 30% in Shariah Compliant Asset backed investments (SUKUK) and cash. Status – Currently under review.

3. DV Balanced Fund: This was an application for registration and authorization of 20,000,000 units of N100 each at par in the proposed Initial Public Offering of the DV Balanced Fund. The objective of the Fund was to achieve capital appreciation over time, while mitigating volatility associated with investing in Nigeria equities market. Status – Currently under review.

Ø The following Offers were put on hold:

1. Legacy BNK Fund 2. Legacy 50 Exchange Traded Fund 3. Legacy Index 50 Fund 4. GTB Balanced Fund 5. Skye Shelter Fund (Tranche II)

Ø Discontinued Applications for Registration & Authorisation of Unit

Trust Schemes:

1. Habitat Value Fund (REITS) 2. Diamond Capital Balanced Fund 3. The Lead Fund 4. Lifetrade Fund Nigeria 5. Core Investment Scheme (COINS)

47


Ø Annual Audited Accounts Approved in the period under review (October – December 2012): –

During the quarter under review, eleven (11) financial year end statements/ Audited

accounts were granted approval. § Indo-Nigeria Fund: Financial Statement/Audited Accounts for the year ended

31st December 2007.

§ Indo-Nigeria Fund: Financial Statement/Audited Accounts for the year ended 31st December 2008.



§ Union Trustees Mixed Fund: Financial Statement/Audited Accounts for the year ended 30th April 2012

§ FBN Heritage Fund: Financial Statement/Audited Accounts for the year ended 31st March 2012

§ SIM Capital Alliance Value Fund: Financial Statement/Audited Accounts for the year ended 30th June 2012

§ Paramount Equity Fund: Audited Accounts/ Financial Report for the year ended 31st December, 2011.

§ Anchor Fund: Audited Accounts/ Financial Statements for the year ended 31st March, 2009.

§ Bedrock Fund: Draft Audited Accounts/ Financial Statements for the year ended 31st March, 2009.

§ Legacy Equity Fund: Draft Annual Audited Accounts/ Financial Statements for the year ended 30th June, 2012.

48


Ø Quarterly Investment Table of Unit Trust Schemes (July – Sept. 2012) – Table is hereby attached.

QUARTERLY RETURNS INVESTMENT TABLE AS AT 30th SEPTEMBER 2013

S/N NAME OF

FUND

FUND MANAG

ER

EQUITIES

MONEY MARKE

T

BONDS

REAL ESTATE

OTHERS

TOTAL EXPEN

SES

EXPENSES/NAV %

NO. OF UNIT HOLDERS

TOTAL

VALUE OF

INVESTMEN

T

NET ASSET VALUE

N N N N N ₦

N N

EQUITY BASED FUNDS

1

Stanbic IBTC Nigerian Equity Fund

Stanbic IBTC Asset Mgt. Limited

11,602,284,922.6

4

2,165,191,881.43

-

13,767,476,80

4.07

162,772,6

10.65

1.20% 13,510,216,193.3

2

17792

2

Denham Mgt. Millennium Fund

Chapel Hill Denham Mgt. Ltd

17,282,231.63

5,928,259.40

23,210,491.03

173,584.

90

0.73% 23,928,066.72

5592

3

Paramount Equity Fund


167,715,5

92.41

16,443,7

68.49

10,000,000

.00

194,159,360.90

1,240,15

8.58

0.64% 193,002,461.99

8726

4 Frontier Fund

Sterling Capital Market Limited

64,957,7

74.08

136,241,4

47.76

-

201,199,221.84

1,369,03

5.16

0.93% 146,518,615.48

783

5

Zenith Equity Fund

Zenith Bank Plc

3,070,308,435.90

798,581,688.53

-

-

-

3,868,890,124.

43

48,288,4

27.43

1.28% 3,772,125,412.43

9097

6

ARM Discovery Fund

Asset & Resources Mgt. Co. Ltd

2,974,677,843.96

672,384,

512.19

552,011,742.

56

275,000,000.00

-

4,474,074,098.

71

37,534,6

87.33

0.73% 5,166,443,512.0

0 24769

7

ARM Aggressive Growth Fund

Asset & Resources Mgt. Co. Ltd

2,242,312,842.09

276,824,769.30

97,967,179.

96

-

2,617,104,791.

35

24,517,2

63.96

0.87% 2,813,439,853.9

3

8056

8

Coral Growth Fund

FSDH Asset Management Ltd

2,144,666,692.60

760,551,127.44

712,694,478.

17

-

3,617,912,298.2

1

26,393,252.34

0.73% 3,597,475,915.09

980

49


9

Afrinvest Equity Fund

Afrinvest West Africa Limited

267,012,193.11

168,592,903.72 0 0.00

435,605,096.8

3 1,827,778

.34

0.42%

437,253,737.74 1842

10 Anchor Fund

Cashcraft Asset Mgt. Limited

32,227,3

67.53

3,500,00

0.00

896,528.78

-

36,623,896.31

446,506.

52

1.18% 37,865,588.54

1007

11 Bedrock Fund

Cashcraft Asset Mgt. Limited

73,985,11

9.01

9,500,00

0.00

896,528.78

-

84,381,647.79

597,612.7

1

0.64% 93,089,743.14

1397

12

Nigeria International Growth Fund

Fidelity Bank Plc

1,449,736,495.75

-

34,007,330.

46

735,840,000.00

-

2,219,583,826.

21

57,510,52

4.60

2.26% 2,541,813,687.4

3

2086

13

FBN Heritage Fund

FBN Capital Limited

1,079,021,617.89

2,315,784,876.42

1,049,601,572.06

4,444,408,066.

37

18,719,46

6.40

0.42% 4,454,428,174.5

1 6098

14

ACAP Canary Growth Fund

Alternative Capital Partners Limited

508,625,403.02

241,511,4

93.47

236,043,903.98

-

986,18

0,800.47

9,986,99

4.10

1.03% 968,791,533.68

4960

15

IMB Energy Master Fund

Finbank Plc

126,994,286.25

-

- -

126,994,286.25

-

0.00% 360,888,427.87

713

16 Legacy Fund

CSL Stockbrokers Limited

635,325,508.81

-

-

635,325,508.81

2,568,68

1.86

0.38% 683,913,517.11

3998

17

UBA Equity Fund

UBA Asset Management Limited

812,657,062.92

519,562,000.00

-

-

1,332,219,062.

92

14,648,51

2.00

0.85% 1,724,592,312.45

2990

18

Intercontinental Integrity Fund

Intercontinental Capital Mkt. Ltd

63,885,879.48

96,266,0

32.47

129,528,000

-

-

289,679,911.9

5

532,896.

59

0.18% 288,151,801.89

5933

19

BGL Nubian Funds

BGL Asset Management

202,806,000.00

-

-

202,806,000.0

0

2,878,66

3.05

1.41% 204,643,578.32

810

20

SIM Capital Alliance Value Fund

SIM Capital Alliance Limited

841,440,436.90

839,797,818.97

173,605,759.

88

219,274,900.

00

2,074,118,915.7

5

16,725,13

7.12

0.43% 3,876,008,271.9

4

13

MONEY MARKET

50


FUNDS

21

UBA Money Market Fund


-

167,903,000.00

-

167,903,000.0

0

991,524.

00

0.47% 210,793,048.20

919

22

FBN Money Market Fund

FBN Capital Limited

1,792,640,592.08

1,792,640,592.

08

1,664,87

3.52

0.09% 1,826,659,862.8

0 1009

23

Stanbic IBTC Money market Fund


9,534,106,746.21

-

9,534,106,746.

21

32,471,47

4.25

0.33% 9,783,077,488.1

9

1849

BOND FUNDS

24

Stanbic IBTC Bond Fund


99,516,3

54.40

1,680,564,11

1.76

-

1,780,080,466.

16

25,691,51

6.31

1.40% 1,828,608,407.3

5

431

25

UBA Bond Fund


92,470,0

00.00

257,760,000

.00

-

350,230,000.

00

1,824,40

6.00

0.45% 409,631,714.82

882

26

Zenith Income Fund

Zenith Bank Plc

64,862,4

66.20

584,397,609.85

-

649,260,076.0

5

2,784,08

7.58

0.41% 679,212,183.85

1510

27

Nigeria International Debt Fund

Afrinvest West Africa Limited

425,912,403.42

1,636,772,585.79

-

2,062,684,989.

21

6,213,675

.45

0.30% 2,066,479,504.4

3

66

28

Stanbic IBTC Guaranteed Invest. Fund


87,410,0

00.00

375,394,1

93.99

1,625,909,086.62

-

2,088,713,280.

61

11,733,72

4.10

0.56% 2,104,972,094.7

6

4983

29

Kakawa Guaranteed Income Fund

Kakawa Asset Mgt. Co. Limited

-

2,993,828,153.87

-

-

-

2,993,828,153.

87

99,983,431.49

3.35% 2,981,359,729.94

2256

30

FBN Fixed Income Fund

FBN Capital Limited

1,560,725,306.01

1,560,725,306.

01

1,895,424.03

0.11% 1,778,581,172.78 292

51


31

Coral Income Fund

FSDH Asset Management Ltd

-

391,141,2

28.92

265,546,226.86

656,687,455.78

4,652,75

0.55

0.71% 657,029,732.66

343

32

BGL Sapphire Funds

BGL Asset Management

-

547,296,173

.69

547,296,173.69

2,962,67

5.11

0.54% 547,606,646.66

1775

REAL ESTATE FUNDS

33

Skye Shelter Fund

SFS Capital Nigeria Ltd

274,116,1

75.88

1,788,19

0,000.00

-

2,062,306,175.

88

12,903,8

01.60

0.56% 2,318,682,109.2

7 2676

34

Union Homes REITS

Union Homes Saving & Loans Plc

-

11,763,714,540.41

-

11,763,714,540.

41

116,922,4

21.43

0.83% 14,157,168,720.3

8

10676

ETHICAL FUNDS

35

Stanbic IBTC Ethical Fund


2,527,559,020.45

628,980,

878.59

-

3,156,539,899.

04

35,497,5

42.77

1.12% 3,162,843,269.5

4

11566

36

Zenith Ethical Fund

Zenith Bank Plc

328,618,465.43

235,970,426.23

215,798,136.

76

-

780,387,028.4

2

10,124,77

5.59

1.27% 797,365,898.14

2193

37

ARM Ethical Fund

ARM Investment Managers

42,789,1

53.52

-

-

-

-

42,789,153.52

2,388,87

5.01

1.06% 225,943,964.00

1161

38

Lotus Halal Investment Fund

Lotus Capital Limited

630,010,

788.12

987,139,642.84

226,104,48

1.07

1,843,254,912.

03

53,123,0

93.13

2.80% 1,898,948,308.8

0 17054

BALANCED FUNDS

39

UBA Balanced Fund


288,021,

172.32

495,173,7

10.00

222,740,000.00

-

1,005,934,882.

32

7,036,71

0.00

0.43% 1,654,372,375.2

6

1404

52


40

Women Investment Fund


57,950,9

29.63

41,346,6

80.14

32,000,000

.00

-

131,297,609.77

6,601,35

5.89

5.28% 125,019,638.16

826

41

Union Trustees Mixed Fund

CDL Asset Management Limited

352,717,8

82.55

1,259,926,416.06

269,600,000.00

12,713,80

0.00

1,894,958,098.

61

7,331,377

.20

0.39% 1,899,773,358.7

2

3074

42

Nigeria Global Investment Fund


60,169,8

17.93

15,925,0

88.92

25,800,000

.00

101,894,906.85

738,388.

77

0.73% 100,936,049.84

32

43

Nigeria energy sector fund


64,116,62

4.00

898,507,502.66

- -

962,624,126.6

6

5,722,114

.23

0.60% 961,178,146.68

823

44

Indo Nigeria Unit Trust Fund


1,328,03

4.60

31,900,5

09.69

- -

33,228,544.29

144,818.

50

0.42% 34,720,829.69

1690

45

Stanbic IBTC Balanced Fund


369,572,636.50

197,489,071.03

94,496,675.

81

43,467,155.

57

705,025,538.9

1

4,805,05

7.82

0.63% 762,898,397.60

95

SPECIALIZED BASED FUNDS

46

DVCF Oil & Gas Fund

DVCF Oil & Gas Plc

-

-

-

-

-

#DIV/0! -

TOTAL

33,253,050,697

.23

31,124,034,627.

54

9,635,492,117.9

4

15,798,641,887

.23

488,

846,536.64

90,300,065,866.58

884,941,687.97

0.90% 97,868,453,05

8.10

177227

Ø Number of Quarterly Returns received for the quarter ending June 30th 2012 – 45 quarterly returns were received between the periods of April – June 2012.

Ø Highlight of observations from the review of returns analyzed 1. Un-invested cash in current account.

2. Violation of asset allocation in line with the Trust Deed.

3. Late submission of Drafts Annual Audited Accounts.

53


4. Violation Trustee Investment Act (TIA).

5. High charges of Management Fees plus other expenses above the provision of Rule 247(j.

6. Unacceptable expenses.

Action taken - Observations were communicated to the Fund Managers.

VENTURE CAPITAL

Ø Applications for registration of Venture Capital/ Private Equity/ Infrastructure Funds under processing:-

1. ARM Infrastructure Fund: The application was filed by Asset & Resources Management Company Ltd. The Objective of the Fund was to invest equity in diverse infrastructure projects across West Africa with focus on Nigeria. Target Fund Size- 250 Million USD, Base currency- USD & Naira. Target Investors: Institutional Investors, e.g. PFA’s.

Status – Deficiencies observed from the reviewed documents were communicated to the Fund Manager and awaiting response.

2. Nigerian Infrastructure Investment Fund: The application was filed by

Joint Venture of African Infrastructure Investment Managers AIIM) and AfriCapital Management Limited. The Objective of the Fund was to achieve Medium – to- Long term returns through private sector participation in a diverse range of infrastructure projects within Africa. Target Investors: Institutional Investors.

Status – Deficiencies observed from the documents reviewed were communicated to the Fund Manager and responses were being awaited.

3. ARM Hospitality and Retail Fund: The application was filed by Asset &

Resource Management Company Limited (Fund Manager). The Fund was structured as an open-ended trust with primary focus on the investment opportunities within high growth hospitality and retail sectors in Nigeria. Status – Deficiencies observed from the review of the documents were communicated to the Fund Manager and awaiting response.

54


Ø Inspection

1. Off-Site Inspection: The following companies submitted their quarterly returns. Find the analysis below:

Analysis of Equity Investment by Venture Capital Fund Managers in SMES as at 30th September 2013

S/N

Name of Company

Amount Under Management (N)

Amount Disbursed in Previous Quarter (N)

Amount Disbursed in Present Quarter (N)

Variance % Diff

.

1. First Fund Limited

4,008,620,312.93 Nil Nil Nil Nil

2. CAN Fund 3,942,640,909.00 345,030,848.87 Nil Nil Nil

3. Stanbic IBTC Ventures Ltd.

1,664,513,000.00 1,342,050,000.00 1,664,513,000.00 322,463,000.00 24

4. DVCF Oil and Gas Nil 712,027,432.00 Nil Nil Nil

5. Diamond Capital Nil Nil Nil Nil Nil

6. Cowry Asset Mgt. Limited

271,474,009.48 484,410,859.85 475,042,028.26 (9,368,831.59) (1.93)

7. Unique Venture Capital

2,382,837,888.00 Nil Nil Nil Nil

TOTAL 12,270,086,119.35 2,883,519,140.72 2,139,555,028.26 322,463,000.00

22

55


LEGAL RULES The proposed rules for the regulations of “sukuk” issuance by local and foreign entities were finanlised and exposed to stakeholders for comments and feedback. This is to ensure proper regulation of the product which is relatively new in the Nigerian capital market. A draft registration format for private equity was exposed to stakeholders for capital market. Similarly, a draft format for quarterly returns on priodic equity/venture capital was exposed for feedback. It would be recalled that the Commission recently developed a new rule to regulate periodic equity fund activities. This was done to provide the necessary framework for the operation of private funds. Rules on sukuk and real estate investments trust schemes (REITS) were published for comments by stakeholders.

ENFORCEMENT AND COMPLIANCE

56


During the period under review, the following activities took place: 1. NON-RENDITION OF QUARTERLY RETURNS

The Commission withdrew the registration of the Thirty-Five (35) Capital Market Operators that were yet to render their statutory returns to the Commission as prescribed under Rule 20B (1) (b) of the SEC Rules and Regulation. The operations had also been inactive in the market for a long period.

2. SUSPENDED COMPANIES Options securities limited and all its sponsored indivduals were suspended for non remittence of complaints proceed of share sales as directed by the Commission.

REGISTRATION & RECOGNIZED INVESTMENTS EXCHANGES

57


STOCK EXCHANGE

• FBN Money Market Fund -17,984,400 units of N100 each at par and FBN Fixed Income Fund -1,752,200 units of N1000 at par were admitted on The Exchange’s Official list under the memorandum quotations on 24th December, 2012.

NEW LISTINGS

• A total of 10,000,000,000 shares of N0.50k each at N13.03 per share were admitted on the Daily Official List in favor of Stanbic IBTC Holdings Plc on under the other Financial Institutions subsector. This replaced the shares of Stanbic IBTC Bank Plc. The erstwhile bank (Stanbic IBTC Bank Plc) transformed into a Holding Company (Hold Co).

• A total of 32,632,084,346 shares of N0.50 each at N15.08 per share of FBN Holdings Plc were admitted on the Daily Official List under the other financial institutions subsector. These replaced the shares of First Bank of Nigeria Plc which was transformed into a Holding Company (Hold Co). Consequently, First Bank of Nigeria Plc was delisted from the Daily official List of the Exchange on Monday November 26, 2012.

COUNTRY UPDATE/OUTLOOK

• The Federal Government had commenced the transformation of the Abuja Securities and Commodities Exchange (ASCE) into a first class commodity exchange as part of the Federal Ministry of Trade and Investments Nigerian Industrial Revolution Plan.

• The Nigerian Stock Exchange (NSE) launched the NSE Market Quality Report (X-Qual). The NSE Market Quality Report was introduced to key stakeholders at the Nigerian Capital Market Committee Retreat and Conference held in Warri, Delta State in November, 2012. The NSE Market Quality Report was designed to disclose the extent to which equities traded at the Exchange provide executions at prices better than the prevailing price quotes before an investor places order.

• The Nigerian Stock Exchange (NSE) announced plans to introduce whistle-blowing in 2012 to ensure full compliance with its rules and regulations by operators. The aim is to strengthen NSE regulatory framework to protect market integrity.

• Guaranty Asset Management Ltd announced a change of name to Investment One Financial Services Ltd. The change of name was part of GTB concluding process of its divestment from its subsidiaries.

• National Pension Commission (PENCOM) planned to permit PFAs to invest up to 50 percent of their pension assets contributed by young people in the stock market as young contributors have higher risk than old contributors, who have low risk because of their age.

• As at the period under review, a total of 33 stocks were added to the basket of market making stocks

58


• The Financial Reporting Council had announced plans to review the membership of the audit committees of companies in Nigeria. According to the council, this had become important to ensure increased transparency in disclosures of financial statements of quoted companies in Nigeria.

• The National Insurance Commission (NIC) and the Securities and Exchange Commission (SEC), had agreed on the need to collaborate on the supervision and regulation of Insurance companies quoted on the Nigerian Stock Exchange.

FRESH REGISTRATION A total of Twenty-Four (24) new applications were received from potential Capital Market Operators to register for the quarter ended December, 2012.

S/N APPLIED FUNCTION NO OF APPLICANTS % OF TOTAL

1 Solicitor 4 16.7

2 Investment Advisers 5 20.8

3 Broker/Dealers 1 4.2

4 Fund/Portfolio Managers 7 29

5 Issuing House 1 4.2

6 Reporting Accountant 2 8.3

7 Venture Capital Manager 1 4.2

8 Inter-Dealer Broker 1 4.2

9 Trustee 1 4.2

10 Underwriter 1 4.2

TOTAL 24 100

A. Registration of fresh Capital Market Operators The Registration Committee approved the registration of Fifteen (15) fresh Capital Market Operators having satisfied all relevant requirements of the Commission. The approved operators are as follows:-

S/N NAME OF OPERATORS REGISTERED FUNCTIONS COMMENTS

1 FMDQ OTC Plc Over-the-Counter Market -

2 African Alliance Stockbrokers Ltd

Broker/Dealer -

3 SFS Securities Ltd Broker/Dealer Transfer of function from parent company

4 Afrinvest Securities Ltd Broker/Dealer Transfer of function from parent company

59


5 EDC Fund Management Ltd Fund/Portfolio Manager Transfer of function from Eco Bank Plc

6 West African Infrastructure Investments Managers Ltd

Fund Manager SEC through CIS Dept. approved for the registration of the company. Because it was the first of its kind in Nigeria and thus an opportunity for investors to diversify their portfolio.

7 Vicmem Investment Services Ltd

Corporate Invest. Adviser -

8 Olabode Akande & Co Reporting Accountant -

9 AAC Practice Auditors -

10 Edward Ekiyor & Co Solicitors -

11 Kusamotu & Kusamotu Solicitors -

12 HIP Asset Management Ltd Fund/Portfolio Managers -

13 NASD Ltd Over-the-Counter Market -

14 Agbo Abel & Co Reporting Accountant -

15 NCDF Investments Ltd Venture Capital Manager -

The Two (2) Over-the Counter Market applications granted approval were FMDQ OTC Plc and National Association of Securities Dealers (NASD). The registration of the two (2) OTC platforms will further the cause of efficiency, transparency and liquidity in the trading of the shares of unlisted companies. Hitherto, such trading activites were never captured, thus leading to a distortion of the real depth of the market. The listings will assist in capturing activites on the platforms and also prepare unlisted companies for listing on the exchange.

RENEWAL

• Dispatched Mails:

A total number of 458 mails were dispatched to Operators and a total number of 218 internal memos on confirmations of status of various Capital Market Operators (CMO’s) were sent out. • CMO Information Update:

The data base of capital market operators on the Commission’s website were reviewed and updated to provide investors with accurate on the status of market operators during the quarter.

COMMODITY EXCHANGE

60


DEVELOPMENT IN THE LOCAL SCENE Efforts to Revamp ASCE

The Federal Government considered the Abuja Securities and Commodity Exchange (ASCE), a vital market infrastructure in its Agricultural Transformation Agenda. To this end, the following steps were taken to ensure its revitalization within the shortest possible time: • The Working Group (TWG) made up of representatives from major

stakeholders and chaired by Permanent Secretary FMT&I worked painstakingly to jointly address the various challenges of ASCE.

• The assistance of the World Bank and the Ethiopia Commodity Exchange were engaged to make ASCE operational.

• The ASCE, with assistance of the international consultants who had expertise in commodity exchange operations, had developed a Business Plan for its revitalization.

• ASCE successfully organized a one-week training programme on the basics of Commodity Exchange Operations which was facilitated by the ECX Consultants. The target participants were the TWG and all stakeholders in commodity exchange.

ACTIVITIES OF THE ZONAL OFFICES

61


LAGOS

During the period under review, the following activites took place:

LEGAL AND INVESTIGATION FOURTH QUARTER REPORT

In the fourth quarter of the year, Fifty (50) new complaints were received.

In order to resolve these matters and prevent continuous exchange of correspondences, eleven (11) all parties meetings were convened and held during the period.

The zone treated a total of Ninety Five (95) complaints, Five (5) out of these cases were successfully resolved.

IBADAN

INVESTIGATION AND ENFORCEMENT

62


The Zonal office received Nine (9) new complaints while six (6) cases were resolved during the quarter under review. However, five (5) cases were forwarded to the head office for enforcement action.

PORT-HARCOURT

OPERATIONAL ACTIVITIES:

63


F INVESTIGATION AND ENFORCEMENT Thirty-three (33) new complaints were received in addition to the Thirty-Five (35) already existing complaints from shareholders/investors from the previous quarter. Therefore, Sixty-Eight (68) complaints were due for consideration during the period, out of which Seventeen (17) were resolved while Fifty-One (51) were earmarked for further investigation.

F MARKET DEVELOPMENT The zone carried out enlightenment programme at the theme of the workshop.

(i) Public enlightenment programme carried out was for National Youth Service Corps Members - Batch “C” during their orientation exercise at Nonwa, Rivers State.

KADUNA

64


The Commission office in Kaduna state received a total number of thirty six (36) complaints comprising of thirty five (35) cases against Registrars and one (1) against a stock broking firm. Of the complaints received, the office resolved thirty one (3) cases while the remaining five (5) were being treated.

In puesuit of its mandate to protect unsuspecting investors within the region, the office in collaboration with the inter-Agency Committee on wonder banks/illegal operators, also engaged in a surveillance exceris paid off and the underlisted illegal companies were closed.

• Destiny mpact Links Ltd. Gumel, Kachia, Kaduna State. • Cash Flowabi Investments Ltd. At Kaduna, Kafanchan and Kagoro • Geldap Investments Ltd. Kachia • Valuation Trust Ltd, Kachia • Hepzibah Nigerian Ltd. Kachia • Temmen Globals Investments Ltd. Kachia • Flourik Dynamic Services Ltd, Kachia • Global Initiative Ltd. Kachia • New Glory Investment Ltd., Kachia • Motully Investment Ltd., Kachia • Abdicate Concept Nigerian Ltd. Kachia • Rolling-Point Inter Link Investments Ltd. • Ayomufe Global Resources Ltd., Kachia • Tinamal Investments Nigerian Ltd. Kachia • Alhassan Gidado Finance & Investments Ltd., Kachia • Skymak Integrated Ltd., Kaduna. • Holymark Investments Ltd, Kachia • Skynew Investment Ltd. Kachia • Sabon Gari Multi-Purpose Corporative Society, Kaduna.

Onther activities the Kaduna office engeaged in were two (2) enlightenement lectures delivered at its NYSC orientation camp and kaduna capital school in preparation for the take off of a Capital Market club of Adara community in the state.

ONITSHA

65


A. COMPLAINTS:

During the period under review, the Commission’s office in Onitsha received a total of seventy two (72) complaints from investors. Out of the complaints twenty two (22) were registrar related, forty seven (47) stockbrokers related, and while three (3) were against other illegal capital market operators.

A total of fifty seven (57) complaints including some of the new complaints were resolved. They comprised of forty four (44) registrars related cases and thirteen (13) stockbrokers related cases.

from oce&r quarterl. 2sec.gov.ng/files/sec ng quarterly report q4 2012. 2.pdf · 7"...

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