Recent Capital Market Initiatives Top SEC’s Q1 2016 CMC Meeting | Independent Newspapers Limited
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Recent Capital Market Initiatives Top SEC’s Q1 2016 CMC Meeting

Posted: Apr 12, 2016 at 3:00 am   /   by   /   comments (0)



Bamidele Ogunwusi, Lagos



Recent initiatives in the nation’s Capital Market by the Securities and Exchange Commission (SEC) as well as updates on the Capital Market Master Plan Implementation will top agenda as the Commission is ready to host the First Quarter 2016 Capital Market Committee (CMC) meeting scheduled to hold in Lagos tomorrow (April 13, 2016).


The Capital Market Committee (CMC) which will hold at the Federal Palace Hotel, Lagos was mainly established to serve as a medium for exchange of ideas among market stakeholders as well as for feedback to Securities and Exchange Commission (SEC) on how to continuously improve the market activities and regulation.


It is an industry-wide committee comprising members of the Commission, representatives of capital market operators and trade groups and other stakeholders. The CMC meets every quarter to deliberate on various issues affecting the market and other policy matters.


Those invited to attend the meeting are: Chief Executive Officers (CEOs) of all registered capital market firms and trade/ professional groups; Chief Executive Officers of all registered trading platforms and exchanges; and Representative observers of Government agencies and other stakeholders; and others are Chairmen of the Senate and House Committees on Capital Market.


SEC, at a regional roundtable on Non-Interest Capital Market in Sokoto, disclosed that it has initiated moves to position Nigeria for a big role in the emerging global market for Islamic or non- interest finance valued at over $2 trillion.


The Director General of SEC, Mounir Gwarzo, said: “In Nigeria, the SEC has implemented a number of reforms aimed at deepening the non-interest capital market. The global Sukuk market continues to witness remarkable growth since after the 2008 global financial crisis. Annual issuances have grown from $15 billion in 2008 to almost $120 billion in 2014”.


A Sukuk, according to the Debt Management Office (DMO) recently, is part of Nigeria’s strategic framework through 2017.


SEC has issued regulatory framework, reviewing the rules and introducing new ones on Islamic Fund Management and on Sukuk issuance.


The legal frameworks have encouraged Islamic product innovation with the registration of five ethical/sharia compliant funds and the issuance of Nigeria’s first ever sub-national Ijara Sukuk by the Osun State government in 2013 which was oversubscribed.


“We are also considering modalities for setting up a Sharia Advisory Council as a body of experts to advise SEC and the market on non-interest product and their applications”,  Gwarzo said.


Investors worldwide are increasingly allocating their resources into Islamic finance products. Hong Kong, with only about 270,000 Muslims, raised $2 billion from Sukuk sales in 2014 and 2015, which attracted $6.7 billion in total orders, while Indonesia plans to tap investors for the sixth year running and Malaysia is returning for its seventh offering this year.


Last year was widely considered a landmark year for Islamic finance, especially with landmark debut Sukuk issuances by countries such as the UK, Hong Kong, Senegal, South Africa, and Luxemburg.