By Modupe Gbadeyanka
In order to make the processes of listing of companies’ shares on the Nigerian Stock Exchange (NSE) more efficient and cost effective, the Securities and Exchange Commission (SEC) has announced a series of changes.
According to the apex capital market regulator, the new amendments will come into effect from Saturday, June 1, 2019.
SEC explained that the newly streamlined processes are aimed at reducing the regulatory burden on issuer’s by eliminating duplication of procedures between the SEC and the NSE, reducing the time to market for the issuance and listing of securities and ultimately driving more listing on the NSE.
With the streamlined processes, the SEC and the NSE will carry out joint site visits of companies intending to get listed, following the registration of their securities with the SEC.
In the same vein, certain offer documents such as the Vending Agreement, Underwriting Agreement, Trust Deed and ISPO, identified to be strictly within the jurisdiction of the SEC are to be submitted only to the SEC. Also, the NSE will rely on SEC for approval of offer documents such as a Prospectus.
Acting Executive Commissioner Operations at SEC, Mr Isiyaku Bala Tilde, noted that, “Streamlining the issuance process with the listing process of the NSE is a major milestone for the Commission in its quest to create an enabling environment capable of attracting new listings.
“One of our core values is leading by example, and we hope that other stakeholders will also look inward to explore similar initiatives which will ensure quick time to market of securities in our market.
“We have no doubt that the streamlined process will enhance the competitiveness of the Nigerian capital market as a global investment destination.”
Speaking on this development, the Executive Director in charge of Regulation at NSE, Ms Tinuade Awe, said, “I commend the SEC for working with using streamlining the listing process for securities on the exchange.
“The NSE is much obliged for the SEC’s demonstration of a worthy example of effective collaboration all through this process in the interest of the market. As an agile exchange, we are determined to make it easier for issuers to list their securities in our market in an efficient, timely and cost effective manner.
“The NSE began its collaboration with the SEC by identifying areas of duplication and overlap between the two organisations, paving way for a better experience for issuers. We believe this will potentially attract more issuers to list their companies and other securities on the NSE.”
Adedapo Adesanya