• Friday, July 12, 2024
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SEC, NGX Group reiterate commitment to digital transformation in capital market

SEC, NGX Group reiterate commitment to digital transformation in capital market

Emomotimi Agama, Director General, Securities and Exchange Commission (SEC) and Temi Popoola, Group Managing Director/Chief Executive Officer, Nigerian Exchange Group Plc have reiterated the commitment of both institutions to the digital transformation of the capital market.

At the stakeholder engagement and press briefing held in Lagos on Wednesday, Agama and Popoola spoke on recent efforts to introduce an innovative digital solution for the capital raising process in the market with a focus on public offers and rights issues.

Subject to SEC approval, this innovative platform represents a significant advancement in digitising the capital-raising process for Issuers. Stakeholders are expected to benefit from enhanced efficiency, streamlined due diligence capabilities, ease of use and accessibility, faster information dissemination, and seamless compliance with regulatory requirements, among other features.

Read also: Highlights of the new securities and exchange commission’s rules on the regulation of derivatives trading

This partnership between the SEC and NGX Group represents a major advancement in the modernisation of Nigeria’s capital market infrastructure, aiming to improve efficiency, transparency, and accessibility for all participants in the market.

Agama addressed stakeholders stating: “I would like to commend NGX Group and all partners on this development. This digital transformation initiative is a testament to our shared commitment to fostering an innovative, efficient, and reliable capital market, embedded in the Capital Market Masterplan.

“By leveraging technology, we can attract the younger generation of investors, enhance regulatory oversight and create a world-class market. This digitisation will play a crucial role in setting a new standard for capital raising in Nigeria and enable the capital market to support the achievement of the $1 trillion economy target of the current administration,” Agama said.

Popoola emphasised the platform’s significance, stating, “This platform marks a pivotal moment in the evolution of the Nigerian capital market. With the support of the regulator and our stakeholders, we have developed an end-to-end digitised market infrastructure platform for distributing financial products, in this case, public offers and rights issues. I can assure the investing public that robust payment systems, comprehensive Know Your Customer protocols, and strong fraud and risk management measures are fully integrated, also ensuring standard capital market intermediation is upheld without compromise.”

The digital platform is designed to increase retail engagement in the capital market, enhance financial inclusion, and expand the available capital pool. As banks aim to fulfil their revised minimum capital requirements via primary markets, the SEC and NGX Group have committed to facilitating a seamless process to help banks and other issuers meet their business objectives.