The Securities and Exchange Commission has stated that Issuers would henceforth be required to obtain the reference letter of “No-Objection” from their respective primary regulators and file same along with other application documents presented to the Commission.
This was contained in a Circular issued by the Commission, Thursday.
The SEC states that this has become necessary in a bid to further improve the Commission’s transaction turn-around period and enhance integrity of capital market instruments.
According to the Circular, “the Commission hereby draws the attention of Issuing Houses to the due diligence requirement for a “No-Objection” letter from “primary regulators” of Issuers, especially those in the Banking and Insurance sectors, as a prerequisite for the Commission’s approval of proposed transactions”.
The SEC further stated that the letter of No-Objection should cover Confirmation that there has not been any material change(s) in the financial statements of the Issuer/Sponsor from the last accounting year end to date; Names of current members of the Board of Directors; and No objection to the proposed issuance.
“Please be informed that where in relevant instances, an application is not accompanied by a letter of “No-Objection”, such submission will be considered to be incomplete and would not be processed” The Commission added.