Home Finance SEC approves share buy-back window

SEC approves share buy-back window

by Business News Report

The Securities and Exchange Commission (SEC) has approved share buy-back window as part of ongoing regulatory efforts to grow the nation’s capital market. The approval is coming four years after shareholders led by the Independent Shareholders Association of Nigeria (ISAN), made the recommendation to the Federal Government. Mr Oscar Onyema, Chief Executive Officer of the Nigerian Stock Exchange (NSE), said at the Standard Bank West Africa Investors Conference in Lagos that the approval showed government’s commitment in leveraging long term savings through portfolio investments.
Under the new approved share buy-back scheme, quoted companies are allowed to buy-back 15 per cent of their authorised shares in a given year. Onyema also announced that the council of the Exchange had intensified efforts to woo majority of the companies in the telecommunication, agriculture, solid minerals, oil and gas sub-sectors. He said that such companies which control the mainstay of the nation’s economy remained the drivers of the Exchange’s projected $1 trillion market capitalisation in the next five years.
NSE boss told the cross section of the global fund managers, stockbrokers and investors that their efforts had yielded results as 20 companies had so far indicated interest in listing at the Exchange before the end of 2012. According to him, NSE recent introduction of new investment products, plans for securities lending and short selling in the nation’s bourse are all aimed at enhancing and sustaining market-based liquidity. Earlier, in a welcome address, Mr Atedo Peterside, the Chairman of Stanbic IBTC Bank Plc, had said that the conference with the theme “Nigeria: Bucking the Trend” was part of efforts to mobilise domestic and international investors on the huge potential of the nation.

Related Posts