SEC to punish 94 firms

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Ninety four inactive companies which could not comply with the new minimum capital base for capital market functions are to lose their licences.

In a circular issued at the weekend, the Securities and Exchange Commission (SEC) directed the 94 firms to state on or before December 4 why “their registration as capital market operators should not be cancelled”.

Extant capital market rules require the regulators to give quoted companies and operators notices before delisting them.

The circular at the weekend served as both a pre-notice on the cancellation of the certificates of registration of the 94 firms as well as a notice to the investing public on the status of the firms.

The Commission stated that the capital market firms “have consistently failed to render their statutory returns to the Commission and may have been unable to comply with the new minimum capital requirements before the deadline stipulated by the Commission which expired on 30th September, 2015”.

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