SEC advises investors on shares, warns against ponzi schemes: The Securities and Exchange Commission (SEC) has again warned against investment in ponzi schemes and assured Nigerians that it would strengthen the capital market toward an enhanced investors’ value.
Mary Uduk, Acting Director-General of SEC, made the assertion while delivering a keynote address at a Town Hall meeting organised by the commission to sensitise investors on shares, investments and ponzi schemes in Port Harcourt.
The meeting with the theme, “Current Initiatives by the Securities and Exchange Commission (SEC) Nigeria to Enhance Investors Value”, is basically to provide financial literacy to investors who have their funds or wishes to invest with fund managers.
Ms Uduk said that there was need to properly sensitise investors to guide against money loss.
She said that Nigerian investors had in the past suffered huge loss due to involvements in various ponzi schemes, wonder banks and other overblown profit oriented businesses.
According to her, these ponzi schemes were being exploited by fraudsters to dupe ignorant investors.
Ms Uduk urged Nigerians to invest in shares and collective investment schemes to avoid the risks of money loss.
The investment expert explained that the commission, through its robust operations, was making the capital market more user friendly as dividends, sales/transfer of proceeds on shares were being handled efficiently within the shortest possible time.
She also said that dividends on shares were being dematerialised making it possible for investors to save proceeds directly in their respective bank accounts rather than in share certificates as was the case in the past.