LogoRegulatory Alerts
2017-07-25

New Rules and Amendments to the Rules and Regulations of the Commission

The Commission has introduced new regulatory frameworks for unclaimed dividends, KYC requirements, and fund/portfolio management operations, alongside significant amendments to Real Estate Investment Schemes and Infrastructure Funds rules. These updates mandate stricter compliance for registrars regarding unclaimed dividend returns, establish a three-tiered KYC framework for capital market operators, and redefine operational requirements for infrastructure and real estate investment vehicles. Additionally, the commission has updated various procedural rules, including those related to underwriting, offer prospectus requirements, and updated fee schedules for market services.

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Nigeria

Securities and Exchange Commission Nigeria

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New Rules and Amendments to the Rules and Regulations of the Commission

A. NEW RULES

  1. Rules on Return of Unclaimed Dividends to Paying Companies.
  2. Inclusion of Independent National Electoral Commission (INEC) voter’s registration card as a valid means of identification of individual clients in the Capital Market.
  3. Three-tiered Know-Your-Customer (KYC) Framework for Capital Market Operators.
  4. Fund/Portfolio Management Operations Rules

B. MAJOR AMENDMENTS

  1. Amendment to the National Investor Protection Fund (NIPF) Rules
  2. Amendment to Rule 508- Rules on Real Estate Investment Schemes
  3. Amendment to Rules on Infrastructure Funds

C. SUNDRY AMENDMENTS

  1. Rule 19- Sponsored Individuals/Compliance Officers
  2. Rule 22 (4)- Minimum Paid-up Capital-Definition of Core/Non-Core Operators
  3. Rule 22 (5)- Minimum Paid-up Capital
  4. Rule 42 (1) & (2)- Half-yearly Returns
  5. Rule 182 (5)- Registration requirements
  6. Rule 279 (2) (d) (viii)- Registrable Securities
  7. Rule 279 (2) (p)- Registrable Securities
  8. Rule 279 (2) (r)-Registrable Securities
  9. Rule 279 (3) (3) (i)- Registrable Securities
  10. Rule 279 (8)- Registrable Securities
  11. Rule 288 (3)- Contents of a Prospectus
  12. Rule 300- Pre-offer waiting period (Fixed Price Offers)
  13. Rule 305- Proceeds of Issue
  14. Rule 312 (6) (i)- Undersubscription
  15. Rule 314- Cost of Issue
  16. Rule 315 (4)- Underwriting of Public Issues
  17. Rule 315 (4) (d)- Underwriting of Public Issues
  18. Rule 315 (7)- Underwriting of Public Issues
  19. Rule 316 (1)- Amount to be Underwritten
  20. Rule 323 (22)- Conditions for Approval of Offer
  21. Rule 340 (2) (e)- Conditions for Approval of Offer
  22. Rule 420 (1)- Depository Receipts by Nigerian Entities
  23. Rule 421- Definition of Acquisition (Mergers)
  24. Rule 566- Conditions to be satisfied by the Issuer
  25. Rule 567 (f)- Registration Requirement for Corporate Bonds
  26. Schedule 1 Part D (3)- SEC Fees on Market Deals

D. Creation of New Form SEC 2D for Fit and Proper Persons (Sponsored Individuals, Directors/Partners) for Registration in the Capital Market.

E. DELETION

  1. Rule 312 (4)- Undersubscription
  2. Rule 340 (2) (h) – Conditions for Approval of Offer
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