The Securities and Exchange Commission (SEC)among other Financial institutions has been advised to further stratify the stock market to allow more small and Medium Scale Enterprises (SMEs) that were hither to not listed on the Nigerian Stock Exchange (NSE) to access the market.
Speaking with The Tide in Port Harcourt Monday on the need to stratify the stock market by the commission a university lecturer in the Department of Banking and Finance, University of Uyo, Prof Ben Etissa said that the process when completed would lessen the strident listing rules that have been hindering such companies from listing in the Nigerian bourse.
He explained that under the new plan the stock market would be classified under tier one tier two and tier three markets, thereby allowing firms that want to setup small exchanges do so.
Etissa stated that the more would allow more SMEs to list in any of the exchanges that would be set up by the Nigerian stock Exchange (NSE).
According to him, “ as at today our law provides the registration of Exchange’s trading plat form, are more than three boards. We have the premium Board we have the main Board and as well as the Alternative Securities Market, Asem Board among others it has been hard for companies to list under the existing Boards”.
As he puts it, what we are doing is to also stratify licence for an Exchange what we have today is a unified requirement for companies to set up an exchange.
The university don maintained that stratification will lessen the requirement noting that “ it you want to have set up an exchange and you want to be on tier two the requirement will be lesser than that on tier one.
He, however, stressed that “ if you are also going to set up an exchange under tier three the requirement will be less than tier two and the kind of company that will also be listed will be less than the other one.
Eissa, a professor of financial management said “we think it will probably dive some of these SMEs to be listed because over the the last 20-26years, we have not seen much progress with the existing status.”
He added that there are few companies that want to come in and set up small trading plat forms and “ we think we have to give them necessary backing to do that”.
On delay in takeoff of curds funding he said that there are some restriction in the companies and Allied Matters Act (CAMA) and the Investment and securities Act (ISA) that have been impediment for the Commission to drive crowd funding.
He, therefore affirmed that with the review of CAMA and ISA which is on- going those limitations are addressed pointing out that “ hopefully by the time the law is reviewed and put into use it will be much easier for SEC to come out with acceptable rules on crowd funding”, he said.
When asked of the cause of delay in demutualization of the Exchange Etissa said that its role as the apex regulator of the Nigerian capital market is to come up with guidelines rules and regulations to drive the process.
He further explained that the Commission has to come up with rules and regulations and should be committed to ensuring that any in situation that intends to demutualize does that successfully.

Bethel Toby