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SEC Moves To Enhance Integrity Of Capital Market Instruments,  Demands ‘No Objection’ Letter From Regulatory Agencies 

Uche Micheal

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.

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