Dipo Olowookere
By Dipo Olowookere
At least 56 dealing-member firms have been marked out for revocation of their licences and expulsion from the stock market, The Nation is reporting.
The journal disclosed that Nigerian Stock Exchange (NSE) is planning to take this step because the affected firms have been inactive for a period of six months.
As at last weekend, a total of 197 firms were active in the stock market, while 56 were inactive.
The firms, according to the Nation, marked out as inactive are Aims Asset Management Limited, Arian Capital Management Limited, Bestlink Investment Limited, Bytofel Securities and Investment Limited, Cadington Securities Limited, CEB Securities Limited, Clearview Investments Company Limited, Covenant Securities and Asset Management Limited, Cradle Trust Finance and Securities Limited, ECL Asset Management Limited, Excel Securities Limited, Finbank Securities and Assets Management Limited, and Gem Assets Management Limited.
Others include GMT Securities and Asset Management Limited, Gombe Securities Limited, Horizon Stockbrokers Limited, International Standard Securities Limited, Investment Shark and Asset Mgt Ltd, ITIS Securities Limited, Kakawa Asset Management Limited, LB Securities Limited, Lion Stockbrokers Limited, LMB Stockbrokers Limited, Mact Securities Limited, and Mainland Trust Limited.
Also on the list are Marimpex Finance and Investment Company Limited, Maven Asset Management Limited, Mercov Securities Limited, Midpoint Capital Limited, ML Securities Limited, Monument Sec and Finance Limited, Mutual Alliance Investment and Securities Limited and Northbridge Investment and Trust Limited.
Furthermore, Options Securities Limited, Partnership Securities Limited, Perfecta Investment and Trust Limited, PML Securities Company Limited, Professional Stockbrokers Limited, Profund Securities Limited, Redasel Investments Limited, and Resano Securities Limited have been marked for expulsion.
The remaining firms include Resort Securities and Trust Limited, Shalom Investment and Financial Services Limited, Stanwal Securities Limited, Summa Guaranty and Trust Company Limited, Supra Commercial Trust Company Limited, Surport Services Limited, Tower Asset Management Limited, Transafrica Financial Services Limited, and UIDC Securities Limited.
According to the report, under the Exchange rules, where a dealing member is inactive for six months, the Exchange shall revoke its licence.
“Under no circumstances shall a dealing member cease to carry out its day to day business activities for which it was licensed to operate without any reasonable cause,” the NSE rules say.
A dealing member may be deemed inactive voluntarily and involuntarily. Voluntary if the firm has not recorded any trading without suspension by the Exchange or Stock exchange Commission (SEC). Involuntary inactivity occurs where the firm has been suspended by the NSE or SEC for infraction, it added.
However, where a firm has been involuntarily inactive for six months, the Exchange can determine whether to revoke the firm’s dealing licence.
“Where the Exchange revokes a dealing member’s licence, the Exchange shall immediately commence the process of expelling such dealing member,” the rules stipulated.
Also, under the rules, suspension of any stockbroking firm by SEC will lead to immediate suspension by the NSE while revocation of any broker’s registration will lead to expulsion of the firm by the NSE.
“Without prejudice to all the remedies open to the dealing member, where a dealing member is suspended by the Commission, as soon as the Exchange is notified, it shall immediately commence the process of suspension or expulsion of the dealing member.
“Where a Dealing Member’s registration is revoked by the Commission, as soon as the Exchange is notified, it shall immediately commence the process of expulsion of the dealing member,” the rules stated.
Source: The Nation
