SEC to relax requirements to encourage SMEs listing


Small and Medium Enterprises (SMEs) that aspire for listing on the stock market may do so now following decision by the Securities and Exchange Commission (SEC) to relax its listing requirements to encourage players in the informal sector.

Mounir Gwarzo, SEC Director-General, at the third quarter post Capital Market Committee (CMC) “We are willing to relax some of the listing and disclosure requirements to encourage listing of SMEs,’’ he said.

Gwarzo said that the commission would collaborate with the federal government on issue of tax incentives and exemption for companies that want to seek listing.

The director-general also disclosed that discussions had reached advanced stage with telecommunications companies to list on the exchange.

He said the companies could seek listing without raising funds.

Gwarzo also said that the commission would reduce transactions cost at the nation’s bourse as part of efforts to encourage more companies into the market in 2016.

He added that arrangements were on top gear for the establishment of a new commodities exchange in line with government new economic drive to boost the agricultural sector.

Gwarzo said that all the efforts by the commission were to boost investors’ confidence back to the market adding that the capital market would not grow without strong investor’s confidence and liquidity.

Gwarzo said that the commission had set up market wide committee to ascertain ways to make transaction costs cheaper at the Nigerian Stock Exchange (NSE) to increase investor participation.

He said that the commission would commence implementation of the committee’s recommendations from 2016.

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