SEC Clarifies Position on First Holdco Transaction
…Cites Compliance and Transparency Mechanism
By Patience Ikpeme
The Securities and Exchange Commission (SEC) Nigeria has issued a clarification regarding its position on the recent First Holdco Transaction, confirming that it granted a “no objection” to the deal after thorough consideration and in full adherence to existing laws and its own regulations.
The Commission’s stance was contained in a statement signed by Mrs. Efe Ebelo, Head of External Relations.
The statement explained that the SEC’s approval, in the form of a “no objection,” was the result of a comprehensive review process, ensuring complete compliance with all applicable regulatory requirements.
The SEC specified that there was no subsequent request for additional information from the Central Bank of Nigeria (CBN) following the conclusion of the transaction, contrary to some narratives.
The Commission also took the opportunity to shed light on the nature of its correspondence with the operators involved in the transaction. It clarified that this correspondence was not a “query” in the conventional sense. Instead, it was an “automated compliance mechanism” specifically designed by the SEC to enhance transparency and ensure the orderly conclusion of significant transactions within the Nigerian capital market. This mechanism serves as a standard procedure to oversee large-scale activities and maintain market integrity.
The SEC concluded its statement by reiterating its unwavering commitment to its foundational mandate. This mandate involves regulating a fair, orderly, and efficient market, ensuring the robust protection of investors, and actively fostering capital formation across Nigeria’s financial landscape.
The Commission’s communication aims to provide clarity and maintain confidence in the regulatory oversight of capital market activities.
