Recapitalisation: SEC to issue guidelines to facilitate capital raising
The Securities and Exchange Commission (SEC) has said that it will soon issue appropriate guidelines to facilitate an efficient capital raising process in the present exercise.
Lamido Yuguda, outgoing SEC’s Director-General, stated this at a virtual press briefing on the 2024 first quarter Capital Market Committee (CMC) meeting.
Yuguda noted that the SEC is partnering with the Central Bank of Nigeria (CBN) and other relevant agencies to ensure a smooth process.
“The SEC commended the CBN for the recently announced policy on bank recapitalisation and noted that the Commission has drawn useful lessons from the previous bank recapitalisation exercise and will very shortly issue appropriate guidelines to facilitate an efficient capital raising process in the present exercise.
“The Commission is committed to a process that will ensure speed, fairness, and good market conduct.
“The SEC is collaborating with the Central Bank of Nigeria (CBN) and other relevant agencies to ensure a smooth process,” he said.
According to Yuguda, the capital market is strong, efficient and resilient, noting that over the past few quarters some large companies have raised significant financing from the market, signifying the depth and ability of the market to provide such financing.
“We are confident of the ability of the market to provide the needed funds in the banking recapitalization,” he said.
Yuguda, who is also the Chairman of the committee, highlighted SEC’s commitment to embracing FinTech innovations while managing associated risks and establishing a regulatory framework for the digital asset space.
He noted that the commission will have the preference on whether the transactions for the recapitalisation will be largely paperless and technological driven.
He said the SEC, in order to bring the young people to participate in the recapitalisation process, will ensure that the transaction will be less paperwork by including digital technology.
“I am very optimistic that we will employ digital technology in the process but whether is going to be 100% is what we can not say for now,” he said.
Yuguda disclosed that while aligning with and directly supporting the Federal Government ‘s infrastructure development goals, the SEC approved five infrastructure fund shelf programs totalling N1.5 trillion, which is a major step forward.
He noted that the commission actively supported the growth of the fund management industry in 2023 with approvals for new mutual funds (N18.20 billion) and discretionary/non-discretionary investment products (N17.60 billion).
He explained that the Lagos Commodities and Futures Exchange shed light on upcoming listings of gold, lithium, and oil and gas.
These products, according to him, are aimed at expanding opportunities for traders and investors in the commodities space.
He said the commission will continue to work with the exchange to overcome challenges on the path to building a strong commodities market in Nigeria.
