SEC gives deadline to capital market operators over registration renewal
The Securities and Exchange Commission (SEC) has asked capital market operators to renew their registration on or before May 31, 2021, saying anyone that fails to do so will not be eligible to operate in the capital market.
SEC disclosed this in a circular dated May 10, 2021 and signed by the management of the commission.
The commission explained that 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. The statement read: “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 commission had on March 23, 2021 issued a circular to the general public and CMOs of the reintroduction of the periodic renewal of registration.
The SEC noted that the reintroduction of renewal of registration was 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 for reference and other official purposes by local and foreign investors, other regulatory agencies and the general public.
The commission noted that it was also aimed at reducing incidences of unethical practices by CMOs and to strengthen supervision and monitoring of the operators.
The SEC said it had amended its rules and reintroduced the requirement for yearly renewal of registration by all CMOs, saying, “This process will be carried out electronically in order to ensure efficiency.”
With these approvals, the Exchange has now completed its demutualisation process. Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc (‘NGX Group’) has been created.
The Group will have three operating subsidiaries, namely: Nigerian Exchange Limited (NGX Limited), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company. All the entities have been duly registered at the CAC.
