Nigeria: NSE Implements Regulatory Reforms

Feb 06, 2014

In an effort to comply with global best practices, the Nigerian Stock Exchange (NSE) is to strengthen its regulations this year.

In an effort to comply with global best practices, the Nigerian Stock Exchange (NSE) is to strengthen its regulations this year.

By implementing a regulatory reform, the NSE hopes to attract more foreign investors, especially for long term loans.

Other reasons for the initiative include:
ensuring listed companies are aware of their duties,
gaining
a better market valuation and
improving
local companies’ management in order to increase their chances of competing with
foreign firms, reports
the
local daily Premium Times.

Among the regulations to be implemented, the NSE is about to adopt the Corporate Governance Rating System.


The NSE also hopes to increase its strength and that of other financial institutions
in an effort to reduce corruption and gain better credit ratings.

This regulatory reform was announced days after doubts were raised over
prospects
for the recently launched Alternative Securities Market (ASeM). Furthermore, the Second Tier Securities Market (SSM) has not proved popular with small and medium-sized
enterprises because of its numerous rules.

Launching the ASeM aimed to enable companies with growth
potential
not
yet
interested in the SSM to be part of the NSE.

It has so far failed to list any firm on its board, partially because of a lack of awareness, reports
This Day.ADNFCR-2976-ID-801691090-ADNFCR