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Brokers hail SEC over extension of recapitalisation deadline

By on January 1, 2015

Some market operators yesterday hailed the Securities and Exchange Commission (SEC) for extending the deadline  to comply with the new minimum capital requirements by nine months, saying it is  a good development for the market and economy at large.

The compliance date was originally fixed for December 31, 2014(today) but the apex regulator has to move it  to September 30, 2015 due to   economic and political uncertainties  that has made it difficult for some operators to comply.

For instance, the new capital requirement stipulates that an operator playing the role of broker dealer   should have N300 million capital   as against the existing N70 million. And they were required to comply today. However,   the commission extended the deadline on Monday.

“The Board expressed satisfaction with the efforts made by all operators, particularly those who have complied with the new requirements. The Board however took cognisance of the effect of the global economic situation and approved an extension of the deadline for compliance with the new minimum capital requirements by nine months, to 30th of  September 2015,” SEC had said.
Reacting to the extension of the deadline, immediate past President of the Chartered Institute of Stockbrokers (CIS), Mr. Ariyo Olushekun, who had early called for a review of the policy, said the development was a welcome one.

“The extension is a welcome development. It is the right thing to do. SEC has shown sensitivity to the declining state of the stock market which has affected even operators that had already met the new capital requirements. Imagine what has happened to an operator who has been investing in the stock market,” he said.

Speaking in the same, the Chief Executive Officer of Finawall Capital Limited, Mr. Tunde Oyekunle,  said  it is a good development for the market.

He noted that  with the extension,  the regulator has shown concern and commitment towards the growth  of the Nigerian economy.

“The extension is   a good development for the market. Regulators have shown concern and commitment towards the growth of the Nigerian capital market by the extension. It would allow more stockbroking firm to meet the capitalisation deadline. Also, the drive to increase the investment population of the country to a reasonable proportion will be enhanced since more firms will be available to serve investors all over the country,” Oyekunle said.

 

[ThisDay]