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SEC implementing initiatives to ease process of conducting capital market business

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 COMFORT EKELEME

The Securities and Exchange Commission (SEC) has said it was implementing several other initiatives to ease the process of conducting capital market business.

Speaking in Lagos at the 2nd Symposium of Issuers and Investors Alternative Dispute Resolution Initiative (IIADRI): 2020 Issuers and Investors Clinic with the theme ‘Nigerian Tax Laws: Matters Arising’, Acting Director General of SEC, Ms Mary Uduk, said the Commission recently met with Issuers to obtain their views on transaction costs and time-to market so as to encourage more securities issuance.

Uduk, who was represented by the Deputy Director, SEC, Lagos, Mrs. Hafsat Rufai, noted that the Commission has introduced a framework to facilitate electronic offerings of securities; a checklist review regime to minimize time spent on reviewing transaction documents and streamlined certain procedures with the exchanges to minimize duplication of effort, in the bid to improve time-to-market.

According to her, all these are targeted at making the listing process more efficient and cost effective by streamlining the approval process, reducing the regulatory burden on Issuers, reducing the time-to-market for the issuance and listing of securities and ultimately driving more listing.

She said, with the streamlined processes, the SEC and the NSE now carry out joint site visits of companies that apply to register their securities and get listed on the Exchange.

“Further, the Commission recently made rules for the prohibition of distribution of gifts to shareholders, observers or any other person at all meetings of public companies and also prohibited meetings with select group(s) of shareholders before any meeting of the companies.

“A circular on the interpretation of these rules will be released in due course. In the same vein, the Commission is reviewing the current Code of Conduct for Shareholders’ Associations and upon conclusion; it will be exposed to the public for comments.

“In order to improve corporate governance, corporate bodies are enjoined to continuously comply with the Nigerian Code of Corporate Governance and file annually with SEC, the Corporate Governance Scorecard. It is also worthy to note that SEC is working on a guideline to strengthen corporate governance of public companies.

“SEC remains committed to creating an environment that enables efficient capital formation and investor protection. For as such as this are therefore welcome as they serve as platforms where innovative ideas can be discussed and solutions proffered by stakeholders in order to contribute to the nation’s economic growth and development”,  she maintained.

Interestingly, experts present at the symposium agreed that there is need for a cordial relationship between the government and the taxpayers in order to bring in more people into the tax net.

They, however, maintained that an unusually aggressive tax collection process may provide more revenue in the short run but may cause long term damage for businesses.

​ Lead, International Tax & Regulatory Services, Asiata Agboluaje, said multiple taxation deters local and foreign investments, causing a decline in the ease of doing business.

According to her, it also creates room for unauthorized persons to get involved in the collection of taxes and levies, adding that the aim should be to encourage voluntary compliance.

To her, accountability will help engender compliance, adding that tax laws should be flexible.

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