By Peter Egwuatu
The Securities and Exchange Commission (SEC) has outlined the importance of the capital market in catalysing economic growth.
Acting Executive Commissioner Operations, SEC, Mr. Isyaku Tilde, speaking at the engagement session with Association of Issuing Houses, Trustees and Solicitors on the commencement of checklist review last week stated: “The need for a market that lives up to its role of catalysing economic growth by facilitating development cannot be over emphasised, and this informs the various initiatives being pursued under the Capital Market 10 years master plan as well as other ancillary initiatives which seeks to amongst others increase the depth and breadth of the market; make for a more competitive market, reduce cost, promote efficiency, transparency and accountability – all under a collaborative regulatory and oversight regime.
“These vision, coupled with the Federal Government’s drive on ease of doing business led to engagements with your good selves and other key stakeholders which has resulted in the change of pre-existing review processes and procedures for debt issuances, to deal with issues of application processing turn-around-time and ensure a highly efficient time-to-market regime.”
Tilde noted further disclosed that the introduction of checklist review process for the capital market will make the system more competitive, reduce cost, promote efficiency, transparency and accountability.
Tilde explained that whilst this process would drastically reduce time-to-market, it places a huge responsibility on Issuing Houses to ensure that its documentation and filing is flawless, that is that all relevant disclosures are made and all necessary documents filed as there would be no prior review for completeness or deficiency.
“Hence both the Issuing Houses and Solicitors who sign up on such filing take up all attendant liability should the documentation be thereafter found to be incomplete or deficient.”
Also in his remarks, the Head of Department, Securities and Investment Services Mr. Abdulkadir Abbas said, “If we open up the market and are able to attract more capital into the system, most of the vices in the society will be reduced because people will be engaged in developmental activities, let’s think out of the box and improve the system to make our market more competitive. Reducing time to market will enable us move forward, fast track our processes and make the system more user friendly”.