SEC extends CMOs’ recapitalisation deadline to December

SEC Tower PHOTO:onnigeria

SEC Tower PHOTO:onnigeria

Moves to avert Nigeria’s removal from MSCI index

The Securities and Exchange Commission (SEC) has announced the extension of the new minimum capital requirement deadline for Capital Market Operators (CMOs) to December 31.

The deadline was extended by 15 months against the initial period of September 30, 2015.

Besides, the commission said it has formed a group that would engage MSCI index provider on the recent announcement that it could remove Nigeria from its frontier market index,

Addressing Journalists at the commission’s 2016 first quarter post-Capital Market Committee (CMC) media briefing held in Lagos yesterday, Gwarzo said that the commission had set December. 31, 2016 as the final deadline for the recapitalisation exercise for all CMOs.

“SEC has extended the deadline for registration which expired yesterday April 13th with 150 days, and has magnanimously volunteered to underwrite the N100 cost placed on registration from the date of expiration,” he added.

He stressed that the commission would continue to clear any operator that meet with the recapitalisation exercise till December. 31, 2016.

He pointed out that the licence of any operator that fails to meet up with the requirement will be cancelled after December. 31, 2016, adding that any operator that failed to meet up with the recapitalisation exercise would seek for new licence at the expiration of the deadline if he or she wished to operate in the market in future.

“Any operator that shows proof of compliance will be cleared by the commission to come back to the market within the grace period.

“After the 15 months grace period any operator that wants to come back will begin a new process of licence acquisition,” he stated.

Concerning the announcement by MSCI index provider that it could remove Nigeria from its frontier market index, Gwarzo noted that SEC has formed a small group that would engage the index providers on the implications of the decision.

He added that the action woud have a multiplier effect on the economy and SEC status as a board member of IOSCO and AMERC executive members.

“Even today (yesterday), we held a meeting on that issue with the leadership of SEC and we have made up a small group of people that would also engage them, telling them the implication, not only to capital market but also the SEC.

“If they do that, the implication will have a multiplier effect, apart from the economy but also the status of SEC, as a board member of IOSCO and AMERC executive member.”

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