SEC Targets N5trn In Listing Of Shariah Compliant Products By 2025

The Securities and Exchange Commission (SEC), has reiterated that it targets 50 listings of Shari’ah-compliant products with a combined market capitalisation of at least N5 trillion by 2025.  The Director-General, SEC, Mr. Lamido Yuguda, who was represented by the Executive Commissioner Operations, Mr. Dayo Obisan at a “capacity building workshop for local Shariah talent for non-interest capital market – level II,” in Abuja said Non-Interest Capital Market (NICM) segment of the revised Capital Market Masterplan (2021 – 2025), targets 100 retail Shariah-compliant products and over one million direct investors in Shariah-compliant products. He stated that the Commission, faced with these ambitious targets, has resolved to redouble its developmental efforts, especially in capacity building that nurtures reputable professionals to leverage Sharia best practices in facilitating the sound implementation of Sharia-compliant initiatives with the ultimate aim of deepening the NICM space. The DG stated that the Commission would continue to leverage its subsidiary, the Nigerian Capital Market Institute, especially in developing robust programmes around Non-Interest Finance which are expected to promote capacity-building and sharia-compliant products and processes.  According to him “As you are all aware, the fundamental difference between conventional finance and Non-Interest Finance is the application of Shariah principles in the latter. This simply means that NICM cannot exist without experts in Islamic commercial jurisprudence (Fiqhul Mu’amalat Al-Maliyya). “The objective of this Workshop, therefore, is fast-tracking the development of experts for the Market. We believe this will enhance the development of our local Sharia talent, not only for the Nigerian Capital Market but also for the Nigerian Financial system in general.  “The level of activities in the Non-Interest capital market that we are currently experiencing in Nigeria affirms the overwhelming acceptance of NICM products by different classes of investors, which portrays a strong appetite for these class of assets as evidenced by the oversubscription of the FGN and corporate Sukuk issued in previous years.    “The Level 1 segment of this important Workshop, which was conducted in December 2022, covered the basic areas of Financial Market Structure and Operations of the Capital Market and three modules from Shariah Principles and Contracts Relating to Non-Interest Capital Markets. “As we dive into Level II, the remaining modules relating to Shariah Contracts will be extensively discussed starting today, while modules on Shariah Issues Relating to Non-Interest Capital Market Principles, and Operation of the Sukuk and Equity Markets shall be treated in the coming days.” He reiterated that Level II is aimed at consolidating participants’ understanding of the theoretical and practical aspects of the NICM.  “Armed with this training and subsequent ones to come, the participants would undoubtedly have the potential to provide Shariah advisory services for the Islamic Finance Industry, particularly the Non-Interest Capital Market’s operations as it relates to Shariah principles and rulings,” he added.   Yuguda expressed further that significant progress recorded in this area is evidenced by the last ranking of Nigerian Islamic Finance in 13th place on the Global Islamic Finance Development Indicator 2022, ahead of countries like Bangladesh and Turkey. He pointed out that the Non-Interest Finance Sector has gradually grown to become a distinct industry within the broader financial landscape, offering alternatives to traditional interest-based financial systems.

SEC seals Stockmatch’s offices over illegal investment activities

In a renewed onslaught against promoters of Ponzi schemes, the Securities and Exchange Commission (SEC), on Tuesday, sealed the premises of Stockmatch Investments Ltd in Maiduguri, Borno State for allegedly engaging in illegal investment activities.According to the commission, the office of the company in Wulari Plaza on Lagos Street  Maiduguri, was shut down for allegedly carrying out investment operations that fall within the ambit of fund managementwithout registration by the SEC. “This company does not have registration of the SEC to conduct fund management activities and has been found to promise exorbitant rates of returns to lure investors. The SEC has exercised its powers under Section 13 (w) Investments and Securities Act 2007, to shut it down” “The commission hereby notifies the investing public that neither this entity nor its investment platforms are registered by the SEC. “The public is hereby reminded that it is unlawful for any private enterprise whether incorporated as a company or not, to solicit funds from the public by whatever means, to fund its private ventures asdoing this will be in contravention of the Investments and Securities Act, 2007″ the SEC stated. The Commission, therefore, advised the public to always confirm from the commission whether an entity providing investment services has been duly registered and whether the investment schemes are authorised by it. It warned that any member of the investing public dealing with unregistered entities was doing so at his/her own risk. It further encouraged the public to exercise due diligence and caution in making investment decisions, adding that a list of valid operators can be obtained on its website.

Revised CMMP tops discussion as SEC, stakeholders hold Q2 CMC meeting

The Securities and Exchange Commission (SEC) is set to hold the Second Capital Market Committee (CMC) meeting in 2023. The meeting is scheduled to be held virtually through Zoom with key stakeholders in the capital market on August 24, while the usual interface with the press, on the outcome of the CMC meeting, will take place on Friday, August 25. The SEC and the capital market community would discuss the implementation of the Revised Capital Market Master Plan, Fintech and commodities trading ecosystem roadmap as well as other matters relating to the capital market and the economy at its Second Capital Market Committee (CMC) meeting in 2023. The CMC is an industry-wide committee comprising members of the SEC, representatives of capital market operators and trade groups and other stakeholders. It was primarily established to serve as a medium for the exchange of ideas among market stakeholders as well as an avenue for providing feedback to the SEC on how to continuously address challenges, improve market operations and enhance the regulatory framework. According to the SEC, “Attendance to both events is strictly by invitation. Invited participants will be sent unique links with which to join the meeting. “During the meeting, issues bordering on implementation of the Revised Capital Market Master Plan, implementation of the Fintech Roadmap, the commodities trading ecosystem roadmap as well as other salient matters relating to the capital market and the economy would be discussed.” The Commission unveiled the Revised Capital Market Master Plan (CMMP) in November 2022 which serves as a blueprint to harness opportunities to better position the capital market as the engine of economic growth and development. The SEC had previously implemented the initiatives of the 10 Year Capital Market Master Plan, which were designed to reposition the Nigerian Capital Market as an attractive investment destination and a critical facilitator of capital formation for the accelerated growth and development of the Nigerian economy.  Some of the CMMP initiatives that have been implemented include; Direct Cash Settlement, regularisation of multiple subscriptions, dematerialisation of share certificates, and the introduction of the e-Dividend Management System. The CMMP initiatives have helped in promoting transparency, protecting investors and enhancing market confidence, while also ensuring that only fit and proper persons are allowed to operate in the capital market. The objectives of the CMMP are also in consonance with the Federal Government’s economic strategy, focused on deepening the capital market and encouraging a private sector-led economy to drive inclusive growth. Expected participants at the CMC meeting include Chief Executive Officers (CEOs) of all registered capital market firms (i.e. Broker/Dealers, Investment Advisers, Custodians, Fund/Portfolio Managers, Receiving Banks, Issuing Houses, Rating Agencies, Registrars, Reporting Accountants, Trustees, and Capital Market Consultants, etc.); Chief Executive Officers of Nigerian Exchange Group (NGX), National Association of Securities Dealers (NASD); FMDQ Group Plc; Africa Exchange Holdings (AFEX); Nigeria Commodity Exchange (NCX); Central Securities Clearing System (CSCS); as well as representatives of relevant financial sector regulatory agencies, among others.