Capital Market Operators (CMOs) yet to renew their registration by May 31, 2021, will be banned from operating.
The Securities and Exchange Commission (SEC) has said in a circular issued in Abuja.
The commission said this was imperative due to the need to have a reliable data bank of all the CMOs registered and active in the capital market.
Recall that on March 23, SEC had informed the general public and CMOs about the reintroduction of the periodic renewal of registration by operators.
“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.
SEC 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 added that names of eligible CMOs would be communicated to the relevant securities exchanges and trade associations.