• Tuesday, March 19, 2024
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SEC to bar unregistered capital market operators after May 31

SEC sets June 30 for Crowdfunding platforms registration

The Securities and Exchange Commission (SEC) has issued an update on registration by all registered capital market operators (CMOs), stating that those yet to renew their registration at the expiration of late filing which is May 31, 2021, shall not be eligible to operate in the capital market.

This was stated by the SEC in a circular dated May 10, 2021 and signed by the Management of the Commission.
According to the SEC, in line with the requirements for renewal of registration, all CMOs were required to have completed the renewal process on or before April 30, 2021.

Consequently, the Commission stated that all CMOs are expected to note that late filing for renewal of registration shall only be entertained from May 1, 2021 to May 31, 2021, while the names of CMOs which have renewed their registration shall be published on the SEC Website/National Daily Newspapers and communicated to the relevant Securities Exchanges and Trade Associations for their notification.

Recall that the SEC had on March 23, 2021, issued a circular to the general public and CMOs in particular, of the reintroduction of the periodic renewal of registration by Capital Market Operators.

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The Commission stated that the reintroduction of renewal of registration is premised on the need: to have a reliable data bank of all CMOs registered and active in the Nigerian Capital Market, to provide updated information on operators in the Nigerian Capital Market for reference and other official purposes by local and foreign investors, other regulatory agencies and the general public, to increasingly reduce incidences of unethical practices by CMOs such as may affect investors’ confidence and impact negatively on the Nigerian Capital Market and to strengthen supervision and monitoring of CMOs by the Commission.

Consequently, the Commission said it has amended its rules and reintroduced the requirement for yearly renewal of registration by all CMOs. This process will be carried out electronically in order to ensure efficiency

All CMOs were directed by the SEC to complete the process of renewal of registration for 2021 on or before 30th April 2021.

“What Nigeria’s SEC missed to do earlier than now was the outright ban of the activities of those online brokers because it encourages outflow of investible funds,” said a market operator who didn’t want his name mentioned.
He further noted that investment in some of the notable foreign stocks, capable of yielding high returns, will be a disincentive for the Nigeria stock market which aside from a few banking, consumer goods, oil and gas, and industrial stocks can only keep investors on a pedestrian lane.