By Dipo Olowookere
From January 2021, stockbrokers would be mandated to give details of any investor in the Nigerian capital market who trades any security more than 499,999 units.
The Securities and Exchange Commission (SEC) has already sent out a circular to registered brokers/dealers that the implementation of this policy will commence from Saturday, January 2, 2021.
It is in line with one of the rules and regulations of the apex capital market regulator, which the brokerage companies agreed to adhere to.
In the notice, SEC reminded the brokers that Rule 56 (1&2) (c) of the Rules and Regulations of the Securities and Exchange Commission provides that:
“Registered brokers/dealers shall disclose to the Commission any dealings in a Security valued at a minimum of 500,000 units executed in a single deal or in multiple deals on the same day on behalf of his clients or on his own account not later than 24 hours after such activity.”
It noted that, “In line with the above rule, the commission wishes to request all Capital Market Operators registered as brokers, dealers or broker-dealers to henceforth comply with the rule and forward the required returns as in the template below. The returns shall be sent to the following email address in excel CSV template, email@example.com.
In the template, stockbrokers are required to supply its name, clearing house (CH) number, investor name, permanent address, email address, phone number, transaction date, security symbol, transaction type, ticket number, volume, unit price and total price.
This policy may have been triggered to monitor the movement of funds in the market.
The stock market has seen a huge interest of domestic investors lately, especially as a result of the low yield environment in the fixed income market.
This recently caused the management of the Nigerian Stock Exchange (NSE) to pull the circuit breaker for the first time since it was introduced in 2016.
This was on Thursday, November 12, 2020, when the All-Share Index (ASI) rose beyond the set threshold of 5 per cent, triggering a 30-minute trading halt of all stocks.
more recommended stories
Naira Loses Stability Against Dollar at Black Market, Trades N475/$
By Ahmed Rahma, Adedapo Adesanya After.
Concerns Over Crude Oil Demand Pull Down Prices
By Adedapo Adesanya The oil market.
Nigerian Stocks Tumble by 0.24% as Market Sentiment Wanes
By Dipo Olowookere It was a.
Seplat Wins Appeal to Unseal Headquarters, Pays N7.6bn Bond
By Dipo Olowookere An indigenous energy.
DPR Urges Stakeholders to Embrace FG’s Digitalisation Policy
By Adedapo Adesanya Stakeholders in the.
Why We Must Sell National Assets—Finance Minister
By Ahmed Rahma The Minister of.
NEC Okays May & Baker, FG’s Move to Produce COVID-19 Vaccine
By Ahmed Rahma The National Economic.
NSE Helps Investors Recover N305m Shares, Get N17m Compensation
By Dipo Olowookere In 2020, the.