Nigerian Bourse Set To Aid Emerging Businesses - Introduces Designated Advisers

05/04/2013

The Nigerian Stock Exchange concluded another phase in its plans of nurturing the growth of small to mid-sized companies via the announcement of selected Designated Advisers (DAs) for companies listed on the Alternative Securities Market (ASeM). The fourteen Dealing Member firms selected included ARM Securities Limited, BGL Securities Limited, Capital Asset Limited, CardinalStone Securities Limited, EDC Securities Limited, Fidelity Securities Limited, and FSDH Securities Limited. Others were Investment One Stockbrokers International, Magnartis Finance & Investment Limited, Marina Securities Stockbroking Services, Morgan Capital Securities Limited, Partnership Investment Company Limited, Primera Africa Securities Limited and UBA Stockbrokers Limited.

Head, Broker Dealer Regulation of The NSE, Mr. Olufemi Shobanjo confirmed that the selection process centred on the DAs who are Dealing Members of The Nigerian Stock Exchange with expertise on Corporate Finance and Investment; In-Depth Knowledge of Capital Market Rules and Operations; Intimate Acquaintance with the Disclosure and Listing plus Post Listing Requirements of The Exchange.

“The selected DAs who were also cleared by the Securities and Exchange Commission (SEC), went through a rigorous process carried out by The NSE which took into account their Compliance History, Transaction Profile and Track Record of Subject Matter Experts (SEPs) presented by the Firms” said Shobanjo. He appended that “The NSE has received and processed applications for Designated Advisers from over twenty Dealing Member Firms and decided to announce the successful applicants ahead of the official launch of the ASeM Board slated for later this month”.

According to Shobanjo, Designated Advisers will be required for all companies listed on the ASeM Board of The Exchange to ensure compliance with all the listing and post listing requirements of the ASeM Board.

It can be recalled that The NSE revealed early this year that part of its major focus would be Small and Medium Scale Enterprises via the launch of its Alternative Securities Market as such companies remained the drivers of growth in the Nigerian economy. The ASeM will be a specialised board on the Nigerian bourse where Emerging Companies with high potential for growth can access the capital market under concessionary rules and requirements to raise long term, low cost capital.

The NSE had also issued a circular to dealing member firms two months ago, asking them to indicate their interest in becoming Designated Advisers to companies listed on or seeking listing to the ASeM.