The Securities and Exchange Commission (SEC) has canvassed the need for government-owned enterprises to be listed on the Nigerian Stock Exchange (NSE) in furtherance of the current drive to deepen the market’s capitalization.
The commission’s Acting Director General, Ms Mary Uduk, mulled the idea when members of the Senate Committee on Capital Market visited her office as part of their legislative oversight functions.
The market regulator, who commended the senators on the efforts made so far in ensuring adequate legislation for the capital market, urged the lawmakers to assist in ensuring that government-owned companies get listed on the exchange to boost investors’ confidence and attract foreign investments to the bourse.
Uduk explained: “We have very big government corporations that can be listed and that will give foreigners comfort to list on the exchange. If this happens, it will be good for our market and also give confidence to investors.
“The commission has embarked on a number of initiatives to boost investors’ confidence as well as deepen the market. At the just concluded Capital Market Committee Meeting last week, an extension in the deadline for regularisation to December 31, 2019, was given.
“This is in a move to ensure more investors regularise their accounts, thereby reducing the volume of unclaimed dividends in the Nigerian capital market”, the SEC boss added.
According to her, the need to give investors with multiple accounts more time to regularize their accounts has been discussed at the Capital Market Committee (CMC) meeting where it was decided that doing so would enable them derive benefits from their investments.
In his remarks at the meeting with SEC management, the Deputy Chairman of the Senate Committee on Capital Market, Senator Foster Ogola, promised that the committee was willing to encourage legislation that would improve investments in the capital market to enable the SEC to perform its responsibilities more efficiently.
The lawmaker said that the Senate was determined to make laws that would encourage new listings on the NSE and help to grow the capital market.
On the purpose of the committee’s visit, Ogola said: “We are here to look at your performances within the year, challenges you encountered and explore ways the Senate can help to make you perform better as the apex regulator of the Nigerian capital market.
“As the apex regulator of the capital market, we expect inputs from you on ways to deepen the market and make it more vibrant; if there are ways we can assist with relevant legislation, we are willing to do so to grow the capital market and ultimately our economy”, he added
