SEC suspends recapitalisation of Stockbroking firms
Posted Wednesday, June 25, 2008
PETER OBIORA
Proshare NI
June 25, 2008 at 17:29 GMT
Securities and Exchange Commission (SEC) has suspended the recapitalisation of Stockbroking firms. Sources close to Proshare NI made this affirmation today in Lagos Nigeria.
This is coming on the heels of the meeting held with Stockbrokers on June 19, 2008 in Lagos Nigeria.
A dealing member of the Nigerian Stock Exchange (NSE) confirmed to Proshare NI the suspension of the recapitalisation exercise by the regulatory body.
The source affirmed that Stockbrokers at the June 19, 2008 meeting held with SEC; claimed they were not duly consulted before the decision was taking.
“The market said they were not sufficiently consulted before the decision was made” the source said.
However, the source further affirmed that the decision to suspend the exercise was to enable stakeholders consult; before reaching a final decision.
“This current development is pending consultations of all stakeholders before they come out with a financial decision” the source affirmed.
In the same vein, a Stockbroker affirmed to Proshare NI that a Seniour dealing member of the Stock Exchange confirmed that the Commission has extended the deadline from the earlier reported December, 2008 to December, 2009.
“I just spoke to three Seniour Dealing Members and one of them confirmed to me that SEC has extended the deadline to December, 2009” the source said.
On the other hand, the other two Seniour Stockbrokers had contrary information on the issue of the suspension of the recapitalisation exercise.
The source affirmed that from the information they furnished, SEC suspended the recapitalisation in order to look into the issue of giving different capital requirement to various categories of Stockbroking firms.
As at the time of filling in this report, Proshare NI sought to clarify the issue from Lanre Oloyi, Head, Media of the Commission, but could not.
“I don’t have the information, anybody saying that, I don’t know where the person has received the information” Oloyi said.
As earlier reported by Proshare NI, the Federal Government (FG) in April 2007 approved new minimum capital requirements for all categories of players in the capital market for certain reasons which include the need for all the sectors of the financial market to be strengthened and repositioned to cope with the emerging local and global challenges.
Following this development, recapitalisation guidelines were promptly issued by the Securities and Exchange Commission (SEC) in August 2007. It was expected that by December 2008 Stockbroking firms must have shored up their capital base to N1.0 billion.
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26th June 2008, 03:48 PM
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