Planned Amendment of Margin Lending Rules Excite Operators

Some capital market operators and investors have hailed the move by the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) to amend the rules guiding margin lending, saying it will go a long way in providing liquidity and boost activity in the capital market.

Margin loan is a type of investment loan that lets operators and investors to borrow money to invest in shares, managed funds and other approved financial products.

Margin lending was very prominent during the capital market boom days prior to the meltdown in 2008/2009.

Following the losses suffered by operators and investors as result of margin lending, SEC and the CBN had issued rules on margin lending in 2010.

This Day, Wednesday, March 27

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