By Nkiruka Nnorom
In a bid to fully digitalise operations of the Nigerian capital market, the Securities and Exchange Commission (SEC) is proposing some guidelines that will enable investors to execute their transactions in the capital market on their internet-enabled appliances and at their convenience.
These are contained in a guideline on Minimum Operating Standards for Information Technology for Capital Market Operators (CMOs) just exposed to the public.
According to the SEC, the new regulatory framework undergoing review seeks to mandate compulsory adoption of information and communication technology (ICT), particularly web-based applications and devices, for virtual capital market transactions.
The provisions of the document apply to all categories of CMOs unless in sections where reference is otherwise made to specific CMO categories. The purpose of the guidelines, according to the SEC, is to establish a threshold of operational efficiency in the Nigerian capital market through the effective adoption of information technology in driving business operations and ensuring the security, confidentiality, integrity and reliability of information systems.
A draft copy of the framework indicates that upon final approval, it will apply to all capital market operations, with particular emphasis on investor-facing functions such as securities trading, fund management, share registration and clearing as well as custodial services, among others.
The new rules mandate all capital market operators to have a well-secured and functional website as well as functional electronic mailing system, either hosted privately or using a cloud service provider, with domain name owned and registered by the capital market operator.