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Licence withdrawals loom as NSE sanctions 53 stockbroking firms

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IMAGE: Nigerian Stock Exchange »



No fewer than 53 stockbroking firms at the Nigerian Stock Exchange (NSE) are at risk of being sanctioned for failing to regularise their licences, BusinessDay has learnt.

Some of the stockbroking firms so listed are those that were de-registered last year (December 24, 2012) by the Securities and Exchange Commission (SEC).

A source close to this development confirmed to BusinessDay that this regulatory move now by the Nigerian Stock Exchange could lead to withdrawal of the affected stockbroking firms’ operating licences.

nse-2Our source at the Nigerian Stock Exchange , described the development as “a lingering regulatory issue”, observing that some of the stockbroking firms had been facing operational challenges –“which made us request they should come and let us know what the issues are”.

Already, the Nigerian Stock Exchange, through the broker dealer regulation department, has given the affected dealing member firms on or before December 19, 2013 to explain why disciplinary proceedings should not commence against them.

BusinessDay also learnt that the NSE’s decision that the stockbroking firms regularise their licences is aimed at protecting investors because most investors who are clients of these firms, may not know that these stockbroking firms have for long been inactive .

The dealing member firms are: AAA Securities Limited, Alliance Capital Management Company Limited, Al-pina Investment & Trust Company Limited, BBL Asset Management Limited,  BFCL Asset & Securities Limited, BIC Securities Limited, CEB Securities Limited, Colvia Securities Limited, Consolidated Investment Limited, Dakal Services Limited, Decanon Investment Limited, Empire Securities Limited, Enabell Capital & Investment Limited, Epic Investment Trust Limited, and Equator Stockbrokers Limited.

“This is a sensitive development in the market. When we hear from them, we will see if there are those we can resuscitate; for those we can’t resuscitate, we take actions from there,” the senior official at the NSE further told BusinessDay on phone.

Other stockbroking firms that risk sanctions after the December 19 deadline are: First Atlantic Securities Limited, First Equity Securities Limited, First Express Limited, Folu Securities Limited, Genesis Securities & Investment Limited, Ideal Securities Limited, Indemnity Finance Limited, Integrated & Allied Securities Limited, KFF Worldwide Solutions Limited, Kingdom Securities Limited, Lion Stockbrokers Limited, LMB Stockbrokers Limited, Mainstreet Bank Securities Limited, Maninvest Asset Management plc, Mayfield Investment Limited, Metropolitan Trust Nigeria Limited, Midland Capital Markets Limited, and Midlands Investment & Trust Limited.

In addition, others are ML Securities Limited, Monument Securities & Finance Limited, MultiTrust Securities Limited, Omas Investment & Trust Company Limited, Peninsula Asset Management & Investment Company Limited, Platinum Capital Limited, Professional Stockbrokers Limited, Prudential Securities Limited, Regency Financing Limited, RIV Trust Securities Limited, Riverside Trust Limited, Securities Trading & Investment Company Limited, Sikon Securities and Investment Trust Limited, Standard Chartered Securities Limited, Trans Lux Services Limited, Transglobe Investment & Finance Company Limited,  Tropics Securities Limited, Truebond Capital & Asset Management Limited, WT Securities Limited, and  Zuma Securities Limited.

By: Iheanyi Nwachukwu

Article Credit: BusinessDay Newspapper

Updated 5 Years ago

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