From Isaac Anumihe, Abuja
SECURITIES and Exchange Commission(SEC), yesterday said that 437 capital market operators met the deadline for the minimum capital requirement as at close of business on Sepember 30, as four merger applications were pending before the apex regulator.
A statement posted on SEC website listed some guidelines that should be adhered to by investors, target firms and the Central Securities Clearing System (CSCS) where an investor wishes to move his stock account from an under-capitalised broker/ dealer to a broker/dealer or broker that has complied with the minimum capital requirement.
According to the Commission, “where the broker/dealer has not met the new minimum capital requirement, the investor should approach a capitalised broker/dealer or broker for engagement: The investor should undergo a Know Your Customer (KYC) process with the new firm.
The statement further said that the broker/dealer or broker should open a CSCS account for the investor, using the investor’s existing Clearing House Number (CHN) from his former brokerage firm. The investor should give a mandate to the target firm to transfer his/her account from the under-capitalised firm to the target firm, and the investor should submit evidence of purchase of the shares, such as contract notes, receipts of purchase, dividend stubs or confirmation of holdings from the registrar’s office, signed by the Managing Director of the registrar firm to the target firm.
Other aspects of the guidelines provides that “the target firm should initiate inter-member transfer request, the Managing Director of the target firm shall go to the CSCS to sign off the indemnity form and the CSCS shall process the request and notify the broker/dealer or broker through the CSCS website.
Recall that the board of SEC had on December 18, 2013 announced new minimum capital requirements for all categories of market operators in pursuant to Section 313(6) of the Investments and Securities Act (ISA) 2007.
Source : SunOnline