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SEC has paid N30m to investors of failed market operators — Gwarzo

Director General of SEC, Mounir Gwarzo
Director General of SEC, Mounir Gwarzo
Director General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, Wednesday, disclosed that over N30 million had been paid to about 530 investors of failed companies in the capital market under the National Investor Protection Fund (NIPF) scheme.
The NIPF was launched by commission last year following growing complaints by market investors who couldn’t recover monies invested in bankrupt companies.
The N5 billion-fund is to provide temporary succour to investors who are paid between a minimum of N5,000 and maximum of N200,000 in the event of any failure instead of losing out completely.
Speaking in Abuja at the opening of a two-day workshop on Capital Market Laws, Ethics and Judicial Interpretation for Superior Court Judges which was organised by the commission, Gwarzo said the measure was among other things aimed at boosting investor confidence in the capital market.
He said: “When we launched the national investor protection fund last year in Lagos, we said we’d complains with respect to a particular operator; they collected people’s money and refused to pay them.”
According to him:”Part of the essence of the Fund is to find a way and means that we can temporarily alleviate thesufferings of those investors; not necessarily to pay the investor what he or she had actually lost but to temporarily give the investor some amount of relief and we’ve paid over N30 million to about 530 investors.”
The SEC boss further explained that the commission’s partnership with the judiciary has become inevitable to strengthen market investments.
He said the workshop sought to establish “An excellent collaboration between the regulator and also the judiciary because you can’t down lay the essence of the judiciary especially in terms of investor protection. Investors would be very comfortable that when they invest in the market and they are not able to get what they want, that they have recourse to finding a way and means that their issues can be resolved and the only way such thing can be done is when both the capital market and the judiciary are on the same page.”
He said: “The judiciary needs to understand the workings of the capital market and the capital market also needs to understand the workings of the judiciary-and this is the essence of the collaborations, for us to understand each other better. We’ve been having this programme in the past but for the past four years, Maeve not had it-but we found it very pertinent that we should come together with the judiciary and ensure that we are on the same page.”

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