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NSE to ban members operating below minimum standards

By on January 20, 2015

Market intermediaries, who fail to meet the Nigerian Stock Exchange’s minimum standards, will be banned from the market at the end of the year, according to the Exchange.

This was contained in its review of 2015 and outlook for 2015, which it made available to journalists in Lagos.

The NSE had in April 2014 announced a new set of minimum operating standards for all three classes of market intermediaries, setting a deadline of December 31, 2014 for compliance with the standards.

According to it, the new standards are part of its efforts to develop sustainability and augment protection for investors and stakeholders.

The Chief Executive Officer of the Nigerian Stock Exchange, NSE, Mr. Oscar Onyema, had in November last year said the standards along with the new capital requirement, which the Securities and Exchange Commission announced four months earlier, were vital to the achievement of the Exchange’s goal of becoming the leading Exchange in Africa.

He had made the comments while delivering a paper on the ‘Benefits of a consolidated stockbroker industry’ at a workshop organised by the Association of Issuing Houses of Nigeria in Lagos.

He said, “The new standards will cater for all three classes of dealing members (broker dealers, brokers and dealers) and address five broad areas of concentration and the objective is to transform market operators now with minimum operating standards in a concise manner that is both easy to comprehend and implement.

“In addition to a consolidated brokerage industry, it is imperative to consider other factors that will drive efficiency in the Nigerian capital market. Such factors include expanding investor reach, both internationally and domestically, elevating broker capabilities, strengthening the regulatory framework and ensuring clear vision and economic viability of the brokerage industry.”

Although the SEC had suspended the December 31 deadline for the recapitalisation, Onyema, while reading from the 2014 review and 2015 outlook of the Exchange, said it would proceed with the enforcement of compliance with the minimum standards.

 

[Punch]