SEC extends recapitalisation deadline for operators to March this year

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SEC NIGERIA LOGO

Again, the Securities and Exchange Commission (SEC) has announced the extension of the deadline for market operators to comply with the minimum capital requirement by three months, from the initial December 31, 2016.

This means that operators have till March 31st to increase their capital base. The extension followed a plea by stockbrokers, who had requested additional six months to enable them comply successfully.

The fact that the market regulator keeps pushing forward the deadline is indicative of the extent of illiquidity in the market, which is characterised by economic meltdown and dwindling purchasing power of the masses, thereby making investment in stocks unattractive.

But full compliance of the Minimum Operating Standards (MOS) for dealing members would help the market to develop robust controls; strong governance framework and effective human capital. This will enable them achieve best-in-class operations in order to compete on a global level for the benefit of investors and the capital market.

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