Capital market operators, regulators seek legislative reforms to increase listings

Market operators have advocated speedy passage of legislative reforms that would promote more listing in the market to boost liquidity in the market.

At a courtesy visit of the Senate Committee on Capital Market to the Nigerian capital market alongside management of the Securities and Exchange Commission (SEC) in Lagos, the stakeholders urged the committee to take an active role in facilitating legislative changes that would increase listing on the capital market.

The Group Chairman, NGX Group, Dr Umaru Kwairanga, stressed the need for the committee to ensure a revisit of the Private Companies Conversion and Listings Bill (PCCLB), stating that the document holds the promise of increasing listings in the market.

The bill seeks the mandatory conversion (from private to public) and listing of all private companies that meet specified thresholds across sectors.

According to Kwairanga, increased listings will not only attract investments but will also contribute to improved governance, transparency and tax accountability, which would help boost government revenue.

He also canvassed regulations that would promote increased allocation of pension funds to the equities market.

“By introducing regulations that would promote increased allocation to the equities market within the pension sector, we can stimulate liquidity, facilitate infrastructure development and enhance price discovery in the market,” he said.

Chief Executive Officer of NGX Group Plc, Temi Popoola, urged the committee to consider policies that would increase dollar-denominated transactions in the Nigerian capital market.

He added that such measures would open new vista for both foreign and Nigerian firms with dollar revenues to actively participate in the market, thereby broadening the scope and attractiveness of the Nigerian capital market.

The Director General of the SEC, Lamido Yuguda, assured stakeholders that the commission would continue to strengthen its regulatory framework to deepen the market and make it more competitive.

The Chairman, the Senate Committee on Capital Market, Osita Izunaso, assured market participants of lawmakers’ commitment to driving legislative reforms to stimulate investment in the market.

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