The Securities and Exchange Commission (SEC) has warned that it will ban capital market operators (CMOs) that are yet to renew their registration by May 31.
This detail was stated in a circular signed by the management of SEC in Abuja on Monday, May 11.
Recall that on March 23, SEC had informed the general public and CMOs on the reintroduction of the periodic renewal of registration by operators.
It had said that this was due to the need to have a reliable data bank of all the CMOs registered and active in the 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,” SEC explained.
According to the circular, the commission said CMOs yet to renew their registration at the expiration of late filing on May 31, would not be eligible to operate in the capital market.
It explained that CMOs were required to have completed the renewal process on or before April 30. However, the commission said late filing for renewal of registration would only be entertained from May 1 to May 31.
The commission also said that asides from barring the CMOs who failed to comply accordingly, their names would be published on its website and national dailies.
It warned that names of eligible CMOs would be communicated to the relevant securities exchanges and trade associations.