Charles Abuede
The Securities and Exchange Commission (SEC), Nigeria’s securities and capital market regulator, has announced that it will, effective May 31, 2021, prohibit capital market operators (CMOs) that are yet to renew their registration from operations and trading activities. The commission disclosed this in a circular signed by the management and published on its website on Monday.
The commission, according to the circular, stated that CMOs that are yet to renew their registration at the expiration of the late filing by the end of May, would not be eligible to operate within the market and further citing that the window period for the late filing would span between May 1 and May 31, 2021, as these operators would have completed the process of renewal before April 30.
The circular also revealed that the commission has planned to publish the names of operators who have renewed their registration on its websites and in national dailies as names of eligible CMOs would be communicated to the relevant Securities Exchanges and Trade Associations.
Recall and as was published by business a.m earlier in March 2021, the capital market regulator had hinted to the general public and CMOs via a circular on its plans to reintroduce the periodic renewal of registration by operators, stating that the purpose was as a result of the need to have a reliable data bank of all the CMOs registered and active in the country’s capital market.
The registration renewal was also to increasingly reduce incidences of unethical practices by the capital market operators (CMOs) that are affecting investors’ confidence and also to strengthen the commission’s supervision and monitoring in the market.
