NSE Set January 30 As Deadline For Stockbrokers Reclassification
The Nigerian Stock Exchange (NSE) has directed all stockbroking firms to perfect their status by January 30, next year to align the firms’ capital and capacity with their roles in the stock market.
In a circular to all its dealing members at the weekend, the Exchange directed the firms that seek to reclassify their registered functions to complete the process on or before January 30 deadline.
Under reclassification, stockbroking firms are expected to choose from the four categories of operations including broker-dealer, the highest level; broker, the second level; dealer, the intermediate level and sub-broker, the lowest level similar to investment agent without any trading privileges.
The reclassification is in furtherance of the implementation of the Minimum Operating Standards (MOS) of the Exchange, which became effective on January 1, this year and the new minimum capital base stipulated by the Securities and Exchange Commission (SEC). With the expiration of the September 30, this year deadline for compliance with the new minimum capital base, SEC is compiling the final list of compliant capital market operators.
The MOS requirements relate to all the dealing members of the Exchange and they address the five broad areas of manpower and equipment; organisational structure and governance; effective processes; global competitiveness; and technology.
“Note that the deadline for completing the reclassification process is 30 January 2016. Trading access would be denied to firms that fail to conclude the reclassification process before the deadline,” the NSE stated.
At the last count, no fewer than 36 stockbroking firms were undergoing reclassification of their functions, mainly reduction of functions to meet the new minimum capital base and the MOS.
These included Alangrange Securities Ltd, Standard Alliance Capital & Asset Management Ltd, Anchorage Securities And Finance Ltd, BGL Securities Limited, Boaz Management & Fin. Strategies Ltd, Camry Securities Ltd, Century Securities Limited, Citi Investment Capital Limited, Clearview Investments Co. Ltd, DBSL Securities Ltd, Express Portfolio Services Ltd, First Alstate Securities Limited, FIS Securities Ltd, Flourish Securities Investment & Trust Limited and G.G Securities & Investment Ltd.
Others were Investment Centre Ltd, Investment Shark & Asset Management Ltd, LB Securities Limited, Mainland Trust Ltd, Marriot Securities & Investment Co. Ltd, Mayfield Investments Ltd, Mission Securities Ltd , Mountain Investment and Securities Ltd, Northbridge Investment & Trust Limited, Professional Stockbrokers Limited, Redasel Investment Ltd, Regency Financing Limited, Shalom Investment Financial Services Ltd, Stronghold Investment Ltd, Surport Services Limited, Tfs Securities & Investment Company Ltd, Transafrica Financial Services Ltd, Transworld Investment & Securities Ltd, UIDC Securities Ltd, Yuderb Investment & Securities Ltd and Woodland Capital Market Plc. TheNation Report.
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