The Nigerian Exchange Limited (NSE) and the Securities and Exchange Commission (SEC) have announced that they are collaborating on streamlining approval procedures and improving the effectiveness and cost-effectiveness of listing procedures.
Lamido Yuguda, the SEC’s director general, said this during the NSE CEO Roundtable in Lagos. He asserted that the Commission is actively putting policies into place to encourage more listings by developing new regulations, revising current ones, and enhancing standard review procedures.
He added that the Commission would increase its interactions with advisers, issuers, and other crucial parties to ensure effective exercise.
Yuguda pointed out that the Securities Issuers Forum (SIF), established by the SEC in partnership with the Nigeria Employers Consultative Association (NECA), aims to give issuers a chance to interact directly with regulators on regulatory matters.
According to him, the forum’s goals include keeping in regular contact with the regulator, promoting good corporate governance and moral behavior, giving the regulator advice on regulations that affect businesses and issuers, encouraging healthy competition, and maintaining a business environment that is conducive to doing business.
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Let me repeat that the SEC is continually concentrating on enhancing the visibility and allure of our market and will continue to develop a fair, transparent, and effective capital market, he said.
The Commission will also keep up with the ease-of-doing-business principle by streamlining its procedures and improving time-to-market by getting rid of unnecessary regulations that cause excessive delays in capital raising and other capital market operations. This is especially crucial to do to expand the market and provide previously banned firms a chance to qualify for listing.
According to him, developing a supportive environment for capital market access is consistent with the SEC’s duty to grow and oversee the market while safeguarding investors.
Additionally, according to Yuguda, the NSE’s demutualization, which resulted in the creation of the current NGX Group, has given the market’s expansion a fresh focus by consolidating the successes attained through conventional methods of capital raising and collaborating with significant stakeholders to introduce new sources of funding.
The Commission applauds NGX’s wise initiatives to maintain contact with experts to hear their opinions on potential modifications that could result in the much-desired market expansion. This initiative could not have come at a better time than at this point when economies are only just starting to deal with the devastating economic effects of the Ukraine and Russia crisis, which reared its ugly head as countries were still coping with the health and economic difficulties brought on by the coronavirus pandemic.
“You may know that the Commission is in the execution phase of a comprehensive market and institutional reform program – the capital market masterplan that is meant to reposition the Nigerian Capital Market to be competitive on a global scale,” he added.