SEC Dissects Delisting Challenges at Capital Market

The Securities and Exchange Commission (SEC) has expressed its readiness to confront and find solutions to the challenges that make companies delist from the capital market.

The commission’s Director-General, Lamido Yuguda, said this during an interview.

He said that to develop the market, the regulator e saw the need to have a forum where the commission would interface with issuers in a bid to discourage delisting.

Yuguda said, “When issuers delist, they do because of certain issues. So, we decided to engage Nigeria Employers Consultative Association (NECA) and set up the securities issuers forum. This was done to sit and discuss the issues and find solutions to them.

“Listing enhances higher investor protection. This collaboration with NECA has been very fruitful and that has given confidence to many of the players. We have started getting interest from the big players.”

Yuguda said that the commission was working hard to look at the various issues and ensure that the issue of delisting by companies is brought under check.

The SEC boss added that some strategic listings had happened in the market in recent times, and the commission was encouraging the diversification of the equity market by listing companies within the power generation, telecommunications and foods sectors.

He said, “We have had some strategic listings like the IPO of MTN, BUA Foods etc and asset class creation or new products like derivatives have further helped diversify the listings from the huge leaning on the financial sector (banks and insurance) several years back.

“The problem with this market is when the big players do not list. So, we started getting interest from the big players like MTN. And they decided to come in a very imaginative way.  They decided to do the offer electronically so that people having telephones could subscribe without having to go through an intermediary.”