The Securities and Exchange Commission (SEC) has implemented various initiatives to reduce time to market with the aim of improving the efficiency and attractiveness of the Nigerian capital market and promoting economic growth and development.
Director General of the SEC, Emomotimi Agama, who disclosed this during an interview over the weekend, said these initiatives include streamlined registration processes, the introduction of an electronic filing system, and enhanced regulatory frameworks, among others.
Agama emphasised that a shorter time to market can benefit capital market development in several ways, like increased liquidity, which will lead to faster listing, allowing companies to access capital more quickly, increased liquidity in the market, and enabling companies to allocate resources more efficiently, thereby driving economic growth.
“Shorter time to market will also improve investor confidence because when the listing processes are efficient, it can enhance investor trust and confidence in the market. A shorter time to market can make a jurisdiction more attractive to companies and investors, promoting competition and growth,” he said.
According to the SEC DG, the Commission in 2019 issued a new rule on the electronic public offering (e-PO) system, which streamlines the process of issuing new securities.
This, he said, allows for faster processing of applications by automating various steps, reducing manual paperwork, and facilitating broader participation, adding that the implementation of e-PO is part of a broader effort to make the market more efficient and reduce time to market.
“The Commission has been actively digitising its operations, including the submission and processing of applications for securities registration, to reduce delays caused by manual processes.
This involved the use of electronic platforms for document submissions and approvals, which not only speeds up the process but also improves transparency.
“We have undertaken regulatory reforms aimed at simplifying and streamlining the approval processes. These reforms include updating rules and regulations to reflect current market realities and adopting international best practices that enhance efficiency.
For instance, the Commission introduced a checklist review for registration of fixed income securities, thereby shortening the review and approval timelines. The Commission launched and conducted targeted bi-annual training for issuing houses to enhance time to market and fast-track review of applications.” He said.
Agama further disclosed that in June 2024, the Commission issued a framework on the banking sector recapitalisation programme, which outlines the guidelines and procedures banks are required to follow to raise capital during the recapitalisation period.
He said, “The major highlight of the framework is the requirement for an e-offering platform to be provided by a securities exchange for the capital raising exercise, which allows for an end-to-end offering, subscription, and payment process. The use of an e-offering platform eliminates multiple identities and reduces the potential for unclaimed dividends, among other benefits.
“Also, a joint team comprising the Commission, CBN, and NDIC was set up to facilitate the recapitalisation program, especially in areas of capital verification, which is a pre-requisite for allotment clearance.”.
He expressed satisfaction with the efforts so far made and assured that the current management of the SEC would continue to do its best to unlock the full potential of the capital market.
Time to market refers to the length of time it takes for a company to complete the capital raising process and list its shares on a stock exchange.
