Sixty-five non-performing stockbroking firms lose licence

For non-performance in the last six months, 65 dealing member firms at the Nigerian Stock Exchange (NSE) may be losing their trading licences, BusinessDay has learnt.

This is coming in the wake of a renewed move by the NSE to sanitise and maintain the integrity of the capital market and further protect investors in Nigeria.

The NSE also believes that majority of prohibited practices in the stock market were carried out by these inactive firms.

BusinessDay checks reveal that AAA Stockbrokers Limited, Aims Asset Management Limited, Allbond Investment Limited, Alliance Capital Management Company Limited, Arian Capital Management Limited, Bauchi Investment Corporation Securities Limited, BFCL Asset & Securities Limited, and BIC Securities Limited are among the firms who are at risk of losing their licences for being inactive in six consecutive months.

Other inactive dealing member firms as shown in the dealing members directory are CEB Securities Limited, Colvia Securities Limited, Consolidated Investments Limited, Dakal Services Limited, Davandy Finance Limited, Decanon Investment Limited, Empire Securities Limited, Epic Investment Trust Limited, and Equator Stockbrokers Limited.

The NSE said the planned revocation of the dealing members’ licences was being pursued through a Securities and Exchange Commission (SEC)-approved rule that authorises the Nigerian bourse to revoke the licences of such inactive firms.

Other dealing member firms that will likely be affected, according to BusinessDay checks, include Falcon Securities Limited, First Alstate Securities Limited, First Atlantic Securities Limited, First Equity Securities Limited, Fittco Securities Limited, Folu Securities Limited, Genesis Securities & Investment Limited, Gosord Securities Limited, Ideal Securities Limited, Indemnity Finance Limited, ITIS Securities Limited, Kakawa Asset Management Limited, Lakesworth Investment & Securities Limited, and LB Securities Limited.

Olufemi Shobanjo, head, broker dealer regulation, NSE, said in a statement yesterday that the Exchange in exercising its regulatory authority over dealing member firms would continue to apply utmost care and diligence.

He noted that the NSE was keen on entrenching the required catalysts to build a healthy and well-regulated market so as to stimulate increasing levels of investor confidence in the market.

Tinuade Awe, head, legal and regulation division, NSE, also noted in the statement that voluntary inactivity occurs where the dealing member firm has not engaged in any trading activity for a consecutive period of six months without being suspended by the Exchange or the SEC.

She said the rule provided further that the Exchange should forthwith revoke the licence of any dealing member firm that fell into this category.

“Involuntary inactivity occurs where a dealing member firm has been suspended from trading activities by the Exchange or the SEC by reason of any infraction committed by that dealing member firm and it has not carried out any trading activity within the stipulated six months period,” Awe said.

“The powers of the Exchange under this SEC-approved rule will be exercised judiciously and will take into account all the circumstances surrounding each individual case as well as the interests of all stakeholders, particularly the investors,” she further said​.

Also to be affected in the licence revocation are Lion Stockbrokers Limited, LMB Stockbrokers Limited, MACT Securities Limited, Mainstreet Bank Securities Limited, Maninvest Securities Limited, Mayfield Investment Limited, Metropolitan Trust Nigeria Limited, Midland Capital Markets Limited, Midlands Investment & Trust Limited, Midpoint Capital Limited, ML Securities Limited, Monument Securities & Finance Limited, Northbridge Investment & Stockbrokers Limited, Omas Investment & Trust Company Limited, and Options Securities Limited.

Others are Peninsula Asset Management & Investment Company Limited, Platinum Capital Limited, Professional Stockbrokers Limited, Profund Securities Limited, Prudential Securities Limited, Regency Finance Company Limited, Riverside Trust Limited, RIVTrust Securities Limited, Securities Solutions Limited, Securities Trading & Investment Company Limited; Sikon Securities and Investment Trust Limited, Summa Guaranty & Trust Company Limited, Transglobe Investment & Finance Company Limited, Tropics Securities Limited, Waila Securities and Funds Limited, Wema Asset Management Limited, Wizetrade Capital & Assets Management Limited, WT Securities Limited, and Zuma Securities Limited.

Iheanyi Nwachukwu