Companies to Raise Funds Faster as SEC Cuts Approval Period to 14 Days
- The SEC has moved to cut down approval waiting time in capital raising exercises, reducing it from 365 days
- Companies can now apply and get approval to raise funds from the capital market in record time
- The SEC is also engaging several technological tools to make its processes seamless and in line with global standards
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The Securities and Exchange Commission (SEC) has slashed the approval time for a company to raise capital in the Nigerian capital market.
This is part of several moves to streamline processes in the capital market, make it more efficient, and position the regulator to support the growth of businesses in the country.
The SEC Director-General, Dr. Emomotimi Agama, disclosed this in a recent statement delivered in Abuja.
Source: Getty Images
Agama noted that with the approval processes cut down, companies can get access to capital quickly and pursue growth plans.
From the former waiting time of over a year, companies can now get the required approval to raise capital in 14 days.
SEC streamlines approval processes
Agama observed that the regulator is committed to helping propel the economy forward, and has moved to reduce the wait time for companies to get approval before raising capital.
He said;
“The capital market is the life and blood of any economy, and of course, this is actually regulated by time. So one of the first things we tackled since we came was to reduce the time to market. Therefore, I can proudly say that we have reduced the time to market from over a year to fourteen days.”
He referenced the recent recapitalisation exercise in the banking sector, where the commission provided the e-offering platform to help banks raise over N2.2 trillion.
Not only did the banks get approval within record time, the process was seamless and all of the offerings were fully subscribed using the technology provided.
The market regulator has also recently updated the rules for cryptocurrency trading, including it in the official tax net.
SEC engages technology to streamline processes
Agama promised that the SEC will be engaging more technology in 2025, as it not only eases the processes but also attracts the younger population into the market.
Source: Getty Images
He explained that technology will contribute greatly to modernizing Nigeria’s capital market, adding that the Nigerian Exchange now has an electronic platform for listing, the e-IPO system which has proven to be very effective.
He also promised that the SEC is working hard to protect investors and grow the capital market by helping investors grow wealth seamlessly.
Recall that the SEC recently released the name of two firms that Nigerians must avoid investing with, as they are not licensed to receive investments.
SEC to stamp out Ponzi schemes
In related news, the SEC has pledged to step up its efforts to stamp out pyramid and Ponzi schemes.
SEC DG underlined that safeguarding investors is a crucial aspect of the Commission's work, and makes room for legitimate businesses to enter the marketplace.
He promised that the SEC's 2025 agenda would place a high premium on investor trust and economic growth.
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Source: Legit.ng
