The acting Director-General of the Securities and Exchange Commission, Mary Uduk said the government is set to introduce regulations on the use of crowdfunding by small businesses to raise capital.
Uduk said the policy is to assist and protect investors in the capital market. She was speaking to reporters shortly after the just concluded meetings of the World Bank and International Monetary Fund in Washington DC,
According to her, Investors’ confidence is central as the regulator of the capital market. “People must have the confidence to invest”.
“With crowdfunding, private companies can raise long-term funds using regulated platforms. The platform of the crowdfunding will be regulated by the SEC.”
On the performance of the capital market in 2019, Uduk insisted that the market has received a significant boost with the listing of MTN Nigeria and Airtel on the Nigerian Stock Exchange.
She noted that the primary market witnessed a new trend in the last one year with the listing of the telecom companies, IPO and dual listings.
“The dual listing of Airtel signifies the interest of the foreign issuers into the Nigerian capital market.
“Consequent to the Airtel IPO, some offshore companies are in discussion with the commission for an IPO that will be dually listed in Nigeria and the United Kingdom.
“If you look at the equities market, especially on the NSE, the market has lost about 16 per cent so far this year on the back of relatively weak economic fundamentals and investors sentiments,” Uduk stated.
For Q4 2019, she says she hope to see some improvement in the equities segment, especially as investors have an opportunity to pick low-priced stocks.
The Commission DG forecast a rise in the market before the end of the year.
(C) Control TV 2019.
