Recapitalisation: Stakeholders to appraise challenges
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Director General of NSE, Ndi Okereke-Onyiuke who disclosed this to newsmen in Lagos
Tuesday, said that the meeting followed the barrage of complaints raised on a daily basis on the consolidation exercise.
“We have been inundated with complaints about the feasibility of the consolidation,’’ she said, adding that the issue was also raised at a meeting with dealers earlier on Tuesday.
While acknowledging that the exercise was in line with government’s economic policy, the director general said that “capital market operators cannot be equated with banks and insurance companies or be treated like them’’.
She, however, urged dealers to brace up to meet the recapitalisation directive, pointing out that the scheduled meeting “is not ‘sacrosanct’’.
Okereke-Onyiuke also urged capital market operators to see the increasing market dynamism as a challenge to build operation synergy, seek merger and possible acquisition of smaller firms.
The Securities and Exchange Commission (SEC) had announced the new capital base in 2006 to strengthen and reposition operators to cope with expected challenges of government’s economic policy and global competition.
The regulatory authority also said that the recapitalisation would bring together fringe players, thus paving the way for well capitalised and properly structured organisations in the nation’s capital market.
Under the arrangement, scheduled to end in Dec. 31, 2008, the minimum paid-up capital for issuing houses was raised from N150 million to N2 billion and Brokers-dealers; from N70 million to N1 billion.
The capital for clearing and settlement agencies was raised from N500 million to N1 billion, while registrars will now have N500 million as their new share capital, up from N50 million.
Operators not affected by the upward review include stock/commodities exchanges, capital trade points, commodities brokers, venture capital managers and individual investment advisers.
Others are consultants (individuals and corporate), rating agencies, corporate investment advisers and trustees.
A major development in the new re-capitalisation programme is the introduction of market makers whose minimum capital base is fixed at N2 billion.
Tuesday, said that the meeting followed the barrage of complaints raised on a daily basis on the consolidation exercise.
“We have been inundated with complaints about the feasibility of the consolidation,’’ she said, adding that the issue was also raised at a meeting with dealers earlier on Tuesday.
While acknowledging that the exercise was in line with government’s economic policy, the director general said that “capital market operators cannot be equated with banks and insurance companies or be treated like them’’.
She, however, urged dealers to brace up to meet the recapitalisation directive, pointing out that the scheduled meeting “is not ‘sacrosanct’’.
Okereke-Onyiuke also urged capital market operators to see the increasing market dynamism as a challenge to build operation synergy, seek merger and possible acquisition of smaller firms.
The Securities and Exchange Commission (SEC) had announced the new capital base in 2006 to strengthen and reposition operators to cope with expected challenges of government’s economic policy and global competition.
The regulatory authority also said that the recapitalisation would bring together fringe players, thus paving the way for well capitalised and properly structured organisations in the nation’s capital market.
Under the arrangement, scheduled to end in Dec. 31, 2008, the minimum paid-up capital for issuing houses was raised from N150 million to N2 billion and Brokers-dealers; from N70 million to N1 billion.
The capital for clearing and settlement agencies was raised from N500 million to N1 billion, while registrars will now have N500 million as their new share capital, up from N50 million.
Operators not affected by the upward review include stock/commodities exchanges, capital trade points, commodities brokers, venture capital managers and individual investment advisers.
Others are consultants (individuals and corporate), rating agencies, corporate investment advisers and trustees.
A major development in the new re-capitalisation programme is the introduction of market makers whose minimum capital base is fixed at N2 billion.
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