The Nigerian Securities and Exchange Commission (SEC) has proposed changes be made to seven rules governing capital market activities.

The proposal which was published on the apex regulators website, was dated 14/03/2017 and titled “Proposed new rules and sundry amendments to SEC rules”

The SEC document, exposed a proposal on new rules for Fixed Income and Primary Issuance Fees as well as a proposal for Equity Primary Issuance Fees.

The SEC also proposed sundry amendments to five other rules namely Rule 314- Cost of Issue, Rule 456 (f)- Rules on Obligations of the Custodian of a Collective Investment Scheme, Schedule I of the Commission’s Rules and Regulations-Registration Fees, Minimum Capital Requirements, Securities and Others.

Proposed amendment to Schedule VI-Basis of Computation of Bid and Offer Prices for Collective Investment Schemes was also made as well as proposed amendment to Rule on Trading in Unlisted Securities- Inclusion of Debt Securities

According to the SEC, the Proposed Amendment on the rule on cost of issue, states that “The total cost of issue shall not exceed 2.833 percent for equity and 2.293 percent for bonds of the total gross proceeds excluding underwriting commission and registrars’ fees from the issue or such percentage of the gross total proceeds as the Commission may prescribe from time to time”.

However, the existing rule on cost of issue which states that “The total cost of issue shall not
exceed 3.17 percent for equity transactions and 3.9375 percent for bonds of the gross total proceeds, excluding indemnity fee, advertisement, printing and take on fees for registrars, from the issue or such percentage as the Commission may prescribe from time to time”

On Proposed amendment to filing and processing fee for all categories the SEC proposed a 900 percent increase to N50,000 from the current fees of N5000 for filing, while current processing fees for all categories which was not available was proposed to be pegged at N200,000.

The SEC however advised all comments be forwarded to or through the DG, SEC not later than two (2) weeks from the date of this publication.


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