Nigerian Capital Market Committee Meeting - e-IPO Guidelines and Recommendations
"Discover the key recommendations and draft guidelines discussed at the recent Nigerian Capital Market Committee meeting regarding the establishment and management of e-IPO platforms. Learn about the framework for e-PO service providers, roles of stakeholders, and the aim for full automation of public offer processes."
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Presentation Transcript
2018 CAPITAL MARKET COMMITTEE MEETING Presentation of the Electronic Public Offer ( E-PO ) Committee 14th November 2018
RECENT DEVELOPMENTS FROM LAST CMC MEETING At the last CMC, the e-IPO Committee was mandated to draft guidelines on the establishment, management of providers of e-IPO platforms; registration and Consequently, a sub-committee (comprising reps from CMSA, ICMR, CSCS and ASHON) was tasked with drafting the guidelines. The sub-committee submitted a draft guidelines for members review and comments.
Key Recommendations (i) The e-PO platforms should be capable of being established and managed by a Securities Exchange, a Capital Trade Point, a Central Depository ( CSD ) or Self-Regulatory Organisation who are Eligible Service Providers ( ESP(s) ). (i) There should be a multiple platform for the market. (ii) The relevant stakeholders (i.e. SEC, Issuing House(s), Registrars, Issuer/Sponsor, etc.) should have administrative access to the e-PO platform for the due execution of their respective tasks and roles.
HIGHLIGHT OF THE DRAFT GUIDELINES The Guidelines aim to provide a framework for the establishment and regulation of e-PO service providers, and to provide guidance to Issuers, Issuing Houses and other stakeholders involved in the e-PO process in the Nigerian Capital Market; In accordance with the provisions of these Guidelines, an e- PO platform can be registered by a company duly incorporated under the laws of the Federal Republic of Nigeria and who is either a Securities Exchange, a Capital Trade Point, Central Securities Depository ( CSD ) or Self- Regulatory Organisation who are Eligible Service Providers ( ESP(s) ).
HIGHLIGHT OF THE DRAFT GUIDELINES CONT. Executive Summary The aim of the Guidelines is to create a framework to enable the full automation of the entire public offer process from subscription to the actual offer. The Guidelines also aim to identify and outline the roles of the participants in the e-IPO process and proffer guidance in this regard.
THE GUIDELINES CONSIST OF TWELVE(12) PART 1. Introduction 2. Executive Summary 3. Definitions 4. Registration Requirements 5. Regulation of Activities 6. Obligations of the Issuing House(s), Issuer and/or Sponsor 7. Information to the public 8. Contingency and Planning 9. Obligations and duties of the ESP 10.The design of the e-PO platform 11. Other matters 12. Process flow chart
NEXT STEPS - Expose Guideline to the market for comments ; - Engage CBN and Heads of Banking Operations on third party access to BVN information.
ISSUES FOR CMC DELIBERATION Layers of cost in e-IPO process parties responsible for costs of payment services; Set definitive timeline to go live;
