SEC proposes full digital capital market

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 in the capital market to do virtually everything on their internet-enabled appliances at their convenience.

These are contained in a guideline on Minimum Operating Standards for Information Technology for capital Market Operators (CMOSs) recently 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 virtually 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 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.