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NSE to establish ASM to attract SMEs’ participation in capital market

By on March 14, 2013

To introduce issuers’ portal for enhance information accessibility

THE Nigerian Stock Exchange (NSE) has unveiled plans to revamp its second-tier market to an Alternative Securities Market (ASM), to enable Small and Medium Enterprises (SMEs) that are emerging to participate and access finance from the Nigerian Capital Market.

Besides, the Exchange has concluded arrangements to introduce the first ever Issuers’ Portal in the Nigerian Capital Market known as X-Issue that will allow online information submission for enhanced interaction between the Exchange and listed companies.

The Head, ASM, NSE, Franklin Nwaubani told journalists yesterday that the Exchange has put structures in place to ensure that these companies sustain growth and would eventually list on the stock market..

He said the platform would help these companies to formalise business operations, increase visibility and integrity as well as become vibrant enough to create wealth, re-distribute wealth and re-allocate wealth.

“We are revamping what we used to know as Second-tier market . We are re-christening it the alternative securities market and we are using the avenue to bring in SMEs that are emerging and showing good growth potentials to access finance from the capital market .

“We have put structures in place to ensure that these hope comes to operation that these companies would eventually grow and become big companies that can list on the Exchange with other bluechip companies.”

The Managing Director, Partnership Investment Company, Victor Ogiemwonyi, explained that the Exchange is doing everything within its powers to attract more local participation and IPOs to the market.

“We are interested in local participation because they are the key drivers of the market. The prospects are too good and confidence is definitely returning in the market. We are doing everything to encourage local participation and some of the things worried in the past are being reformed.

“Many people are eager to issue securities, even some companies are here who want to be sure that there is a level of confidence and participation that would ensure that when they bring IPOs in the market, it would be successful.

On the new issuers’ portal, the Head, Listings Regulation of the NSE, Mrs. Josephine Igbinosun, explained that X-Issuer is a secure on-line portal through which Issuers will submit financial and other information to the NSE and the market from the comfort of their offices.

She noted that the portal will not only encourage transparency and accountability but will expedite the discharge of Issuers’ post-listings obligations relating to structured and continuous disclosures.

She also stressed that X-Issuer will eliminate leakage of price sensitive information because of the minimal time between submission by the issuer and release to the market.

Igbinosun explained that the portal will offer unique benefits of data capture, form submission validation and other ancillary services such as submission notification mechanisms and tracking of submitted information. With this, listed companies no longer need to submit hard copies of information to The Exchange by post, hand delivery or courier

The Listings Regulation boss further stressed that the X-Issuer will facilitate comparison of data by international and local investors and analysts, giving issuers’ greater visibility in the market. The mandatory electronic submission will put in place better coordination that will ensure information from companies is released to the market accurately and in a timely manner.

In a bid to enhance the overall user experience, the Exchange commenced a User Acceptance Test (UAT) with a number of listed companies, providing training to build capacity and requisite know-how of the new electronic submission system, as quality and knowledge transfer are key success factors.

“At The Exchange, we intend to be well-positioned to adapt our business to meet the needs of our clients for overall operational efficiency. X-Issuer once again demonstrates our commitment to building an African Institution that competes effectively in the global,” Igbinosun added.

 

(guardian)