Banks, insurance companies and other companies with primary regulators will have to obtain initial clearance from their regulators as part of the application for any capital market issue.
In a circular yesterday, Securities and Exchange Commission (SEC) stated that companies would henceforth be required to obtain the reference letter of “No-Objection” from their respective primary regulators and file same along with other application documents presented to the Commission.
SEC stated that the new requirement become necessary in a bid to further improve the Commission’s transaction turn-around period and enhance integrity of capital market instruments
The apex capital market regulator stated that the letter of “No-Objection” should cover confirmation that there have not been any material changes in the financial statements of the companies or sponsors from the last accounting year end to date as well as in names of current members of the board of directors; and no objection to the proposed issuance.
SEC noted that where in relevant instances, an application is not accompanied by a letter of “No-Objection”, such submission will be considered to be incomplete and would not be processed.