The Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) have taken steps to ensure that the processes involving listing on the NSE become more efficient and cost effective.
This would be achieved by streamlining the approval process between the SEC and the NSE, according to a statement issued on Thursday by the NSE.
“We are determined to make it easier for issuers to list their securities in our market in an efficient, timely and cost-effective manner,” Tinuade Awe, the Executive Director of Regulation at NSE, said, according to the statement.
The streamlined process, which would become effective from June 1, 2019, aims at reducing the regulatory burden on issuers by eliminating duplication of processes between the SEC and the NSE, reducing the time to market for the issuance and listing of securities and ultimately driving more listing at the Lagos bourse, the statement said.
“We believe this will potentially attract more issuers to list their companies and other securities on the NSE,” Awe stated.
“Streamlining the issuance process with the listing process of the NSE is a major milestone for the commission,” said Isiyaku Bala Tilde, the acting Executive Commissioner, Operations at the SEC. The apex regulatory body of the Nigerian capital market is determined “to create an enabling environment capable of attracting new listings,” according to the commissioner.
Tilde said the commission hoped that other stakeholders would also look inward to explore similar initiatives which would ensure quick time to market of securities in the Nigerian capital market.
With the streamlined processes, the SEC and the NSE would carry out joint site visits of companies intending to get listed, following the registration of their securities with the SEC, they said.
Similarly, certain offer documents such as the Vending Agreement, Underwriting Agreement, Trust Deed and Irrevocable Standing Payment Order (ISPO), identified to be strictly within the jurisdiction of the SEC will subsequently be submitted only to the SEC. Also, the NSE would rely on SEC for approval of offer documents such as a Prospectus.
SEC’s Tilde expressed confidence that the streamlined process would enhance the competitiveness of the Nigerian capital market and make it a global investment destination.
“I commend the SEC for working with us in streamlining the listing process for securities on The Exchange,” the NSE’s Awe said. She added that the NSE was obliged for the SEC’s demonstration of a “worthy example of effective collaboration all through this process in the interest of the market.”
Awe further noted that the NSE began its collaboration with the SEC by identifying areas of duplication and overlap between the two organisations, pointing out that the move would pave way for a better experience for issuers.
OLUWASEGUN OLAKOYENIKAN
