SEC, NSE Streamline Listing Process to Stimulate Interest

By Ndubuisi Francis in Abuja

The Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) have begun moves to make the processes of listing on the NSE more efficient and cost-effective by streamlining the approval process between the SEC and the NSE.

The streamlined process, which will come on stream on June 1, 2019, is aimed at reducing the regulatory burden on issuers by eliminating duplication of processes between SEC and NSE, reducing the time to market for the issuance and listing of securities and ultimately driving more listing on the Exchange.

A statement jointly issued by SEC’s Head, Corporate Communications, Mrs. Efe Ebelo, and the Media Relations Officer of the NSE, Joseph Kadiri, said with the streamlined processes, SEC and NSE will carry out joint site visits of companies intending to get listed, following the registration of their securities with 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 a prospectus,” the statement added.

The acting Executive Commissioner, Operations at SEC, Mr. Isiyaku Bala Tilde, disclosed 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”.

He added: “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, Ms. Tinuade Awe, Executive Director, Regulation at The Nigerian Stock Exchange said: “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 it’s collaboration with SEC by identifying areas of duplication and overlap between the two organisations, paving the 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.”