SEC Extends Companies Recapitalisation To Sept. 30, 2015

The Securities and Ex
change  Commission (SEC) has announced the extension of date in minimum capital  requirements for registered  capital market operators expected to take off by January 1, 2015.
The apex regulators had on Wednesday approved an extension of the deadline for compliance  by nine months, to 30th September 2015.
According to a statement  by the SEC made available on their website,  the  board of the Securities  and  Exchange  Commission at its  meeting of 22nd  December, 2014 reviewed  the status  report  on the level of compliance  by capital market operators with the  new minimum capital requirement  which has a compliance deadline of 31st  December 2014.
The statement  added that the Board expressed satisfaction with the efforts made by all operators, particularly those who have complied with the new requirements.
The Board however, took cognizance of the effort of the  global  economic situation and approved an extension of the deadline for compliance with the new minimum capital requirements by nine months to 30th September  2015.
The Tide learnt that the extension resulted from pressures by market operators on the SEC for an extension of the recapitalization deadline due to the ongoing uncertainties  in the economic sector  which had hampered market  growth and development.
However, the apex capital  market regulator  had increased  minimum  capital  base  for broker/dealer  by 329 per cent  from the existing N70 million to N300 million.
Broker, which currently operates with capital base of  N40 million  will now be required  to have N200 million representing an increase of 400 per cent.
Issuing house which facilitate new issues in the primary market will now be required to have minimum capital base of N200 million as against the current capital base of N50 million.
The capital requirement for underwriter also doubled from N100 million to N200 million .
A Registrar will now have a minimum capital base of N150 million as against the current requirement of N50 million while the minimum  capital base for corporate  investment adviser’s  capital  base is now N2 million from N500,000.