Nigerian Stock Exchange, Securities and Exchange Commission streamline approval process to encourage more listings

The Nigerian Stock Exchange, NSE, and the Securities and Exchange Commission, SEC, have moved to make the processes involving listing on the NSE more efficient and cost effective by streamlining the approval process between NSE and SEC.

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

With the streamlined processes, NSE and SEC will carry out joint site visits of companies intending to get listed, following the registration of their securities with the SEC.

This visit was hitherto carried out independently by both organisations. 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.  The Exchange will rely on SEC for approval of offer documents such as a Prospectus.

Mr. Isiyaku Bala Tilde the Ag. Executive Commissioner Operations at the Securities and Exchange Commission 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. One of our core values is leading by example, and we hope that other stakeholders will also look inward to explore similar initiatives which 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 collaborative regulation 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 engagement with 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.”