The Securities and Exchange Commission (SEC) has assured of its commitment to encourage upstream oil & gas, and telecommunication companies to list in Nigeria to diversify the sector distribution of the Nigerian Stock Exchange (NSE).
Director General of the SEC, Ms Arunma Oteh while delivery a speech in London recently said that the Commission would institutionalize the stock market by encouraging collective investment schemes including exchange traded funds, Islamic funds, and other ethical funds, and Real Estate Investments Trusts ( REITs).She further disclosed that alternative investment market would address funding needs for Small and Medium Scle Enterprises (SMEs).
According to he, “ Building a vibrant fixed income market on the heels of a successful sovereign bond market is paramount as the President recently granted tax waivers in order to reduce issuance costs for sub-national and corporate, and government bonds by 300 basis points
She noted that pension assets total USD 13 billion and growing at more than 20% per annum.Oteh noted that world class legal framework including Investment and Securities Act promulgated in 2007 and specified Investment and Securities Court- the Investment and Securities Tribunal, recently established Asset Management Company to takeover toxic assets are things meant to enhance the market.
Other measures to enhance market performance, she mentioned include : Best practice rules and regulations including promulgation of news rules and regulation to ensure a world class capital market and restoring market integrity.
She disclosed that the recent introduction of margin guidelines to curtail excessive risk taking, adoption of International Financial Reporting Standards (IFRS) for all banks and publicly quoted companies for 2012 financial statements, ongoing revision of corporate governance code.