Telecom giant, MTN, is yet to present a formal application for its planned listing on the Nigerian Stock Exchange. This is according to the Securities and Exchange Commission (SEC).
Ms. Mary Uduk, the Acting Director General of SEC, said even though the regulator has had some discussions on the planned listing of the telco, there is no paperwork at the moment to affirm MTN’s intention.
“I KNOW THAT MTN HAS DECIDED TO COME TO THE MARKET THROUGH LISTING BY INTRODUCTION AND I KNOW THEY WORKING HARD TOWARDS IT AND HAVE VISITED THE COMMISSION. BUT THERE HAS NOT BEEN ANY FORMAL APPLICATION FROM THE COMPANY.”
Why SEC’s approval cannot be swept under the carpet
For a company to become a quoted company, there are certain requirements that must be met. One of the requirements is filing out a formal application to the Securities and Exchange Commission.
The Securities Exchange Act of 1934, which created the SEC, was designed to restore investor confidence in the capital markets by providing investors and the markets with more reliable information and clear rules of honest dealing.
As posted on the Nigerian Stock Exchange (NSE), companies seeking admission into the Official List of the NSE must, in addition to complying with The Exchange’s rules governing listing, comply with the following:
- The relevant provisions of the Companies and Allied Matters Act 2004,
- Investment and Securities Act 2007 and the SEC rules and regulations,
- as well as any other relevant statutory requirements.
It is pertinent to note that the NSE is the primary and leading platform for the listing and trading of shares in Nigeria.
A look back at what prompted MTN’s listing
MTN’s listing on the Nigerian Stock Exchange (NSE) is part of a settlement agreement for a 2015 offence committed by the telco, over its failure to duly register it’s subscribers as required by the law.
Since the 2015 infraction, the company has been embroiled in a number of other scandals, including the recent ones involving alleged illegal repatriation of funds, and unpaid back taxes.