SEC sets up panel to probe companies’ delisting

The Securities and Exchange Commission has set up a committee to find out the reason behind the delisting of some firms listed on the Nigerian Stock Exchange.

The mandate of the committee is to find out why some companies have delisted and what can make others to delist.

“We want to know if there are regulatory issues; is it that they are having issues with compliance with our regulations? We have given the committee a mandate to come up with recommendations so that if we need to amend our rules to attract more listing, we will look at international best practices and do that. If we have to talk to other government agencies and stakeholders, we will equally do so,” the Acting Director-General, SEC, Mary Uduk, stated while commenting on the move.

The committee is also to drive advocacy and other activities towards increasing the number of listed companies on the various Exchanges in the country. It is to propose strategies to attract listings from target sectors, undertake relevant advocacy as well as other activities that may be relevant to the achievement of the mandate.

According to SEC, members of the new management team have worked in the commission for many years with experiences in different departments and aspects of the capital market.

“They have always been part of the commission’s efforts at improving investors’ confidence and implementing the Capital Market Master Plan,” Uduk noted.

She said the master plan would continue to be SEC’s working document as the commission would continue to implement initiatives that would promote investors’ confidence such as e-Dividend registration, direct cash settlement, dematerialisation, complaint management framework, financial literacy and the Investors’ Protection Fund, among others.

She stated, “In as much as the capital market will like to attract as many companies as possible, the decision to be listed rests with the individual companies. All we do is to encourage companies and let them see the benefits of being listed. However, all public companies, whether listed or not, are expected to register their securities with the commission.

“We also have rules stipulating that shares of public companies can only be transferred on SEC-approved trading platforms/Exchanges. Thus, even when a company delists, its shares can still be traded on an Exchange like the NASD OTC Plc.  In addition, the commission is liaising with the Corporate Affairs Commission to ensure that companies comply with registration of their securities and exchanging such securities only on SEC-approved platforms.”

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