24 CMOs fail SEC recapitalisation exercise

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Securities and Exchange Commission SEC has disqualified 24 Capital market operators (CMOs) as it released the final list of those who have complied with the new capital requirements to continue operations in the country.
The CMOs disqualified for non-compliance and/or inability to substantiate claim of compliance based on queries raised by the audit firms have now left 429 to operate in the market.
In addition, 16 new CMOs were added on the list, ten (10) of which were newly registered companies and six (6) filed evidence of compliance after the release of provisional list which were verified and accepted.
The list of the recapitalised operators was released ahead of the implementation of Direct Cash Settlement which commences Monday January  4, 2016.
The Direct Cash Settlement (DCS) is a process where cash proceeds from trades executed by Brokers on the Exchange settles directly into investors’ bank account. DCS is aimed at improving transparency, entrenching investor confidence, reducing market infractions and improving trading velocity.
The list released to the public on Sunday was based on the consideration of the reports on capital verification and the responses from the affected CMOs.
The Direct Cash Settlement (DCS) which commenced today is based on an agreement reached with the Nigerian Stock Exchange (NSE), Central Securities Clearing System (CSCS) PLC, Association of Stockbroking Houses of Nigeria (ASHON) and Nigeria Inter-Bank Settlement System (NIBSS) Plc.
Consequent upon this dealing firms were expected to have sent relevant information to NIBSS not later than last Wednesday, December 30, 2015 to enable them log-on to NIBSS portal for validation of Bank Verification Numbers (BVN).
All investors are therefore expected to complete a Direct Cash Settlement form with their Stockbroking Firms.

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