The Securities and Exchange Commission (SEC) has approved the  rules  proposed by the Nigerian Stock Exchange (NSE)  that would guide the share buy-back in the nation’s capital market.

The Chief Executive Officer of the NSE, Mr. Oscar Onyema disclosed this  in Abuja  last Monday at forum to mark the 50 years of capital market regulation in Nigeria.
Share buy-back is being pushed by the NSE as part of the efforts to deepen and enhance liquidity in the market.

SEC had in 2008 introduced share-back in the nation capital market when the market down turn began. However, no company has taken advantage of the policy.
In order to encourage companies to implement share-back whenever they deem it necessary, the NSE had to issue its own rules, which the apex regulator has approved.

Onyema noted that all the plans by the new management of the Exchange to transform the Exchange were on course. He explained that already the segmentation of the Exchange’s sectors had been effected while more products would be introduced in due course.

According to him, Exchange Traded Funds would be introduced into the market before the end of the current year, while options and futures would hit the market in 2013 and 2015 respectively.

He added that the target of raising the market capitalisation to $1 trillion by 2016 would equally be achieved.

Onyema reiterated the commitment of the Exchange to  check the frequent delisting of companies.
He stressed   that apart from segmentation of the market, the Exchange was also ensuring that listed companies were properly serviced the way they should be serviced so as to discourage delisting.

The NSE boss had,   earlier in an  interview  with THISDAY, declared that  the job of the Exchange was to make sure that  companies realised the promise of the value they were supposed to get when they came to list.

“We are beginning to: review our listing rules, address the listing requirements and address the menu of  value added services  we can provide to our listed companies. If they decide to delist because they want to reinvest their funds, we want to satisfy that we have serviced them properly,” he  said.

He added that the exchange had created a new   department called Listing, Sales and Retention, which was part of the Business Development Division.

“The job of the staff of this department is to maintain relationship with existing companies at the board level, investor relation level , Chief Financial Officer  and relationship with bankers and lawyers that advise these companies,” he had said.

Source: ThisDay/Goddy Egene