REGULATORS TO CONSIDER MODALITIES FOR ADOPTING IFRS
The Director General of the Securities and Exchange Commission (SEC), Ms Arunma Oteh has disclosed that the commission with other regulatory authorities would consider the modalities for adopting the International Financial Reporting Standards (IFRS) for public companies.
Oteh who disclosed this at a conference in Lagos recently said theat public companies have been mandated to adopt the IFRS statement for the year 2012.
She stated that the SEC had useful interaction with public companies that would help enhance good returns and corporate governance practice, adding that they are encouraged to file in reports to the commission in this regard 'to make our statistics and data collection easier', she said.
Oteh noted that to strengthen supervision in the capital market, the exchange would migrate to risk based financial supervision to enhance portfolio diversification. 'We have a market that is equity driven but mostly banking sector oriented. The bank cover 70 per cent of the market capitalization of the stock market and that is why we were most hit by the global economic recession,' she said.
The Director General noted that to stem the tide of the banking dominance, the commission has received assent from President Goodluck Jonathan on how to encourage NNPC and telecommunication companies to be listed on the NSE to enable investors to participate on their achievements. She said the listing would engender accountability, broader the market and make it less dependent on the banking sector.
Speaking on the bond market, Oteh said that the President has approved tax discrimination against Sovereign Government bond and the corporate bond so that disparity between the two bonds will be eliminated.
She said, 'We have seen a number of state governments coming to the market. Issuing houses will start to focus on fixed income market. We feel this is an opportunity for fixed income market to take off in our country.'
She expressed the need to promote collective investment scheme that would help to institutionalize the market and make it more vibrant and sustainable. Oteh noted that the capital market would thrive more on the Islamic type of fund due to a significant proposition of Moslems adding that the market would encourage more instruments on this regard.
'We have been monitoring the fund managers. We are working closely with trustees and fund managers and we have set up trade group which are doing quite well. We must have a market that engenders investors' confidence and integrity.
'Building a world class market is the key of realizing and achieving the millennium development goal. If we met the millennium goal, diversifying our economy and make Nigerian an international country for investment growth, other countries will speak for us. We have investors who are looking at this market to come in when opportunities are profitable and we believe that our local and international investors will enjoin us to bring a mutually rewarding future for us and our country,' she said.