SEC Announces New  Requirement for Capital Market Operators

Kayode Tokede

The Securities and Exchange Commission (SEC) has introduced evidence of registration with a Trade Group as a new requirement for capital market operators seeking to renew annual registration at the commission.

The new requirement, is contained in a statement signed SEC’s Director of Registration, Exchanges and Market Infrastructure Department (REMI),  Hafsat Rufai,  on behalf of the commission’s director general at the weekend.

“This is to inform all  Capital Market Operators (CMOs) that the annual renewal of Registration of CMOs for the year 2025 will commence on January 01, 2025. All CMOs applying for renewal of Registration are required to include their 2025 annual  receipt from their respective groups as part of their application. In line with the Commission’s Rlules and Regulations, all CMO are to complete the process of renewal of registration for 2025, on or before January, 31, 2025., Note that CMOs without valid registration will be penalized and may be excluded from carrying out capital market activities,” the SEC said.

Responding to the announcement, the Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Sam Onukwue, lauded the commission and urged market operators to take advantage of the new directive.  

“It is a welcome development, and we duly commend the SEC for this directive. It will strengthen Trade Groups in their advocacy role as well  as in promoting market transparency and professionalism,” he said.

Market watchers were quick to say that this new requirement is aimed at promoting transparency, accountability, and professionalism in the capital market.

SEC believes that registration with a trade group will help to ensure that capital market operators adhere to industry standards and best practices. The Commission is committed to protecting investors and promoting the development of the Nigerian capital market. This new requirement is an important step towards achieving these goals,” explained a Custom Street Analyst.