SEC Inaugurates Issuers’ Forum to Aid Capital Market Devt

SEC Inaugurates Issuers’ Forum to Aid Capital Market Devt

Ndubuisi Francis

The Securities and Exchange Commission (SEC) has inaugurated the Securities Issuers Forum (SIF), designed to aid capital market development in the country.

Speaking during the virtual inauguration of SIF, which is a collaborative effort of the SEC and the Nigeria Employers Consultative Association (NECA), the Director General of the Commission, Mr. Lamido Yuguda, said the forum has the potential to act as a bridge between the SEC and issuers of securities.

SIF, he stated, will create a platform for issuers to engage the Commission in order to encourage more listings, improve contribution of issuers to the development of the capital market as key stakeholders, deepen and broaden the market and ultimately contribute to Nigeria’s economic development.

According to him, it is also expected that with the establishment of SIF, the SEC will be better positioned to engage issuers on capital raising opportunities to facilitate increased participation in the capital market, development of new products to meet funding needs and addressing issues relating to compliance with regulatory requirements.

He noted that the idea of a forum for issuers of securities is not novel, adding that such fora exist in other parts of the world to cater to the interests of issuers of securities in the capital market.

According to him, in Europe, the European Issuers acts as the voice of issuers of securities representing over 8,000 companies and national associations of issuers of securities.

He added that in the United States of America and South Africa, the American Securities Association and the Debt Issuers Association respectively serve as the associations for issuers of securities.

Lamido noted that: “In Nigeria, the Nigeria Employers Consultative Association (NECA), the umbrella body for over 3,000 members, seeks to protect interests and rights of businesses and ultimately influence policy making.

“By encouraging the establishment of the SIF in collaboration with NECA, the SEC hopes to bridge the gap that exists between the expectations of issuers and the requirements of the regulator.”

Noting that while forums for issuers are not very common in the African region, they have proven to be veritable tools for capital market advancement in the Jnited Kingdom (UK), Europe and Asia.

The inauguration of SIF, Yuguda stated, marks an important move by Nigeria to reap the benefits associated with its establishment.

Among others, the SEC boss stated that the objectives of issuers fora are to maintain regular contact with the regulator and policy makers, advise the regulator and policy makers on regulations affecting companies/issuers, conduct research, organise conferences, roundtable discussions and other events for the benefit of members and promote sound corporate governance and ethical conduct among members.

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