The Securities and Exchange Commission (SEC) had approved rules for trading of green bonds in the Nigerian capital market, its acting director general, Mary Uduk stated in Lagos.
A green bond is an instrument whose proceeds are used to fund environment friendly projects.
Uduk who was speaking at a press briefing at the end of the Capital Market Committee (CMC) meeting at the weekend also hinted that in the near future the Commission would introduce rules for use of derivative trading in the market.
These, according to her, would apart from deepening the market would further enhance the development of the sector.
The CMC meeting which is a periodic gathering of stakeholders where critical issues are discussed and decisions taken on crucial matters affecting the development of the capital market, was the first of its kind this year.
She said the week stood out as a memorable one in the market as it witnessed the Commission hosting the first award night themed: “Committed Partnership, Capital Market and Economic Development” to recognize individuals who partnered with the Commission to work in various technical committees towards the achieving the initiatives of the 10-year master plan
Disclosing some of the decisions reached at the meeting, the acting director general said the Commission had made progress in attempting to resolve the issues of transmission of shares related to the estates of deceased investors.
She said the process had commenced in the Lagos State Probate Registry and that the Commission with the support from relevant stakeholders had carried out enlightenment programs to educate the public on the issue.
Uduk stated that although implementation of full dematerialization of certificates in the capital market had commenced with listed shares, the CMC had advocated for the extension of the exercise to include shares of unquoted companies in order to enhance liquidity
On the free float requirement in the stock market, she stated that the technical committee had made in-roads into the issue in recent times, adding that the observed flouting of the agreement by some quoted companies was caused by their stocks which were traded below par.
However, she said a committee had been mandated to study the situation in all its ramifications and come out with recommendations on its findings.
The acting director general stated that the Commission had commenced engagement with the Central Bank of Nigeria(CBN) on margin lending, but added that discussion was still on going on the inclusion of bank shares on margin loans.