The Securities and Exchange Commission has stated that it has continued to employ its compliance tool to ensure that only fit and proper capital market operators practice in the market. This the Commission said, has resulted to an improved level of compliance with filing of prudential returns rising to 96% in 2022 compared with 81% in 2021.
Director General of the Securities and Exchange Commission, Mr. Lamido Yuguda who stated this during an interview, described it as a welcome development given the Commission’s quest to pursue a capital market that is based on the principles of increased transparency, efficiency and global competitiveness.
He described year 2022 as another eventful year in which the Commission continued its implementation of sound initiatives that are expected to bring about the much desired market development that would not only deepen the market but also ensure the continued protection of investors.
According to him, “The Commission released Guidelines on the Implementation of Sections 60-63 of the Investments and Securities Act 2007.The NCMI organized training for CEOs, CFOs and other officers of public companies to facilitate their compliance. The Commission also provided filing options for Audited (Annual) and Fourth Quarter Financial Statements.
“The Commission has conducted the Risk Based Supervision (RBS) examination on 20 capital market subsidiaries of five (5) Financial Holding Companies aimed at supporting the entire financial system stability.
“To further protect investors and boost confidence in the Market, the Commission has commenced implementation of 100 percent custody requirement on all Collective Investment Schemes (CIS).
“Also, after a thorough review of the status of privately managed funds, the Commission mandated that Rule 95 should also apply to all Discretionary/Non-Discretionary Portfolios and Products to ensure the protection of investors’ funds in the Fund Management space”.
The SEC DG Disclosed that a comprehensive on-site inspection exercise was successfully carried out on the 95 registered Fund Managers to ensure that both the Public and Private Funds registered by the Commission are being operated in line with the relevant Rules and Regulations.
On Non-Interest, Yuguda stated that the Commission, working jointly with the Federal Inland Revenue Service (FIRS), the Non-Interest Finance Committee of the CMC and other stakeholders has developed a taxation regulation on non-interest finance.
The Non-Interest Finance (taxation) regulation he stated, has been approved by the Honourable Minister of Finance, Budget and National Planning, and has already been gazetted. This is a positive development that will spur investments in Non-Interest Capital Market products.
He disclosed that the Nigerian Capital Market witnessed significant momentum, with the main equity bourse (NGX) recording a N6.1 trillion increase in the equities capitalization, from N21.82 trillion on December 31, 2021 to 27.96 trillion as at December 30, 2022 representing a 28% increase, outshining most of the global securities markets. The NGX All-Share Index also recorded a 19.98% year-on-year growth from 42,716.44 points on December 31, 2021 to 51,251.06 as at December 30, 2022.
“On the Debt side of the capital market, the S&P FMDQ Sovereign Bond Index closed at 592.84 points on December 14, 2022 indicating a4.8% increase from 565.67 points in December, 2021.
“The Market witnessed this despite relatively weak corporate earnings, investor apathy and slow economic growth. However, we expect to see enhanced growth in 2023 driven by initiatives that target improvement in the business environment, increased liquidity, and possible increase in sovereign bond issuances to finance the budget deficit” he added.