The Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) have streamlined the processes involved in the listing on the nation’s stock market for more efficiency and cost effectiveness.
A statement in Lagos on Thursday said the approval process between the two organisations had been streamlined.
It said that the streamlined process which would come into effect on June 1, was aimed at reducing the regulatory burden on issuers by eliminating duplication of processes between them.
“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 exchange will rely on SEC for approval of offer documents such as prospectus,” it said.
Mr Isiyaku Bala Tilde, SEC Acting Executive Commissioner Operations, was quoted by the statement as saying that streamlining the process was a major milestone.
“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,” tilde said.
Ms Tinuade Awe, NSE Executive Director, Regulation, commended SEC for streamlining the listing process.
“I commend the SEC for working with us in 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,” awe said. – NAN.