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Capital market operators risk losing license as SEC moves to protect investors

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SEC sets N50m as paid-up capital for Warehousing, Collateral Mgt companies

Some capital market operators risk losing their license, as the Securities and Exchange Commission (SEC) move to protect investors against unethical behaviour in the stock market.

The capital market authority had directed the operators to renew their registration before April 30, 3021, but the deadline was extended to May 31 this year. The periodical registration was made necessary on March 23.

The registration is meant to assist SEC monitor the activities of the capital market operators by identifying the ones active. The regulator said it will help reduce unethical practices as well.

It was stated that the decision was also made due to concern for investors, so names of capital market operators accredited by SEC will be published and circulated to securities exchanges and trade associations.

READ ALSO: Domestic investors pull out N248.94bn from Nigeria’s capital market

Operators that fail to meet the deadline will not be allowed to continue operation in the capital market. In a circular published on SEC website on Monday, stating the intention of the regulator, it was stated that the registration is meant to:

“To provide updated information on operators in the Nigerian Capital Market for reference and other official purposes by local and foreign investors, other regulatory agencies and the general public,” SEC explained.

Adding that it will also be effective in increasingly reducing “incidences of unethical practices by CMOs such as may affect investors’ confidence and impact negatively on the Nigerian Capital Market and to strengthen supervision and monitoring of CMOs by the Commission.”

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