Director General of the Securities and Exchange Commission, Dr. Emomotimi Agama has said that the Commission has implemented various initiatives to reduce time to market with the aim of improving the efficiency and attractiveness of the Nigerian capital market, promote economic growth and development.
The SEC DG who spoke during an interview weekend, said these initiatives include streamlined registration processes, introduction of an electronic filing system and enhanced regulatory frameworks among others.
Agama emphasised that 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 enable 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.
According to the SEC DG, The Commission in 2019 issued a new rule on 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 digitizing 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 checklist review for registration of fixed income securities, thereby shortening the review and approval timelines. The Commission launched and conducted a 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 banking sector recapitalization programme, which outlines the guidelines and procedures banks are required to follow to raise capital during the recapitalization period to ensure a smooth, transparent, and efficient capital raising process which is serving as a comprehensive guide for Banks/Holding Companies and market participants on the requirements of the Commission for capital raising and mergers and acquisitions as well as assist the participants navigate the recapitalisation programme effectively to ensure proper and timely review and approval of the transactions.
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 end-to-end offering, subscription and payment process. This is based on our resolution to enhance time-to-market, efficiency, transparency and integrity of the recapitalisation programme. The use of e-offering platform eliminates multiple identities and reduce potential for unclaimed dividends among other benefits.
“Also, a joint team comprising the Commission, CBN and NDIC was set up to facilitate the recapitalization programme, 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 in unlocking the full potentials of the capital market, in aligning with the Renewed Hope Agenda of the President Bola Ahmed Tinubu led administration.
“We will continue to do our utmost best to ensure that the capital market is well positioned to drive economic development. One thing I promise and one thing we promise as a team is that Time to Market will be properly dealt with. Approvals for issuances will be done swiftly so that when companies desire to come to the market, they know exactly what time approvals will be given. We are also going to guide in the process of submitting their applications, which is now done electronically. If you want to do an offer, the application will be submitted electronically. What does that do? It helps with the process of review and feedback” Agama added.
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.
