Nigeria’s stock brokers Institute wants SEC to suspend capital increase for operators
The Securities and Exchange Commission (SEC) has been asked to jettison the move to increase the minimum capital base for capital market operators, the newly inaugurated president of the Chartered Institute of Stockbrokers (CIS) Olatunde Amolegbe has said.
Amolegbe, who spoke at his inauguration noted that the current operating environment would not support an increase in the capital base of operators in the capital market.
“The regulators should not increase the minimum capital base of market operators as the current operating environment would not support such a move,” he said.
He also spoke on his agenda for the institute and assured the financial market community and the government of his administration’s determination to address the immediate needs of the Institute while medium and long term strategic focus would be vigorously pursued.
“I will work in harmony with our distinguished Council Members to ensure that we take CIS to the next level in all aspects.
These include the areas of conducting examinations, policy advocacy, membership relationships, and, training and professional development. However, I pledge firmly that we will carry all our critical stakeholders along in everything we do,” Amolegbe said.
The former acting director-general of SEC, Mary Uduk had in February said the commission is considering jacking up the minimum capital requirement for stock broking companies.
SEC last increased the minimum capital base for brokers/dealers from N70 million to N300 million in 2014.
Also, the minimum capital for broker only was raised from N40 million to N200 million, while the minimum capital base for dealers was increased from N30 million to N100 million.