The final list of CMOs that met the deadline represents 437 out of the total 449 registered capital market operators published after the necessary capital verification that was conducted on September 30, 2015 deadline.
The Commission on its website listed four operators processing merger applications approvals and court sanctioning.
Chairman, Association of Stockbroking Houses of Nigeria (ASHON), Mr Emeka Madubuike said, the level of stockbroking firms compliance was high.
According to him, the minimum capital base started with over 211 active stockbroking firms. As at the ending of the deadline, 206 have complied. We need to look into the future and strategy on how to do business in the capital market.
The board of the SEC in 2013, announced new minimum capital requirements for all categories of market operators in pursuant to Section 313(6) of the Investments and Securities Act (ISA) 2007.
The apex regulator of the nation’s capital market increased minimum capital base for broker/dealer by 329 per cent from the existing N70 million to N300 million. A broking firm which operated with capital base of N40 million, now has N200 million, representing an increase of 400 per cent.
The minimum capital for corporate investment advisers was however retained at N5 million, unlike individual investment advisers who would only operate with a 300 per cent hike in capital base from N500,000 to N2 million.
To facilitate the smooth implementation of the new minimum capital requirements for operators, the CMC set up a market-wide “Implementation Committee on New Minimum Capital Requirement for CMOs,” comprising the SEC, Nigerian Stock Exchange (NSE), Central Securities Clearing System (CSCS), ASHON and all other capital market trade groups.Culled from Leadership
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