Late Results: SEC to Amend Market Rules

• Late Results: SEC to Amend Market Rules

The regulator of the capital market – Securities and Exchange Commission – plans to amend market rules to make public companies to submit their financial results as and when due.

Worried by the increasing cases of late results filing and the negative effect the practice has on the market, SEC has hinted that it does not want the trend to continue, going forward.

Findings showed that the commission would be amending Rule 35 (7) of its rules to decisively tackle the issue of late filing/updating of documents by capital market operators.

SEC is also proposing a new rule to create a robust framework for the regulation and supervision of capital market holding companies.

The rule, SEC said on its website, would encompass the entire spectrum of the regulation of capital market holding companies: pre-registration requirements, registration requirements, corporate governance structure, ownership and control, permissible and non-permissible activities and general obligations.

The commission is also considering the amendment of Rule 420 to strengthen existing rules on Global Depository Receipts by providing robust regulatory requirements for all kinds of depository receipts, which may be issued or traded in Nigeria or by Nigerian entities.

It is also considering an amendment to Rule 25 to provide further clarity on the requirements for all capital market operators to be registered with relevant trade groups/associations.

The commission is said to be considering the amendment to Rules 56, 67, 84, 88, 69, 178, 179 and 181 to facilitate the harmonisation of registration requirements for incidental functions.