Deadline set by SEC for capital market operators to renew by January 31
Emomotimi Agama, the Director-General of the Securities and Exchange Commission (SEC), has issued a reminder to all Capital Market Operators (CMOs) regarding the deadline for completing their registration renewals. The SEC emphasized the importance of this annual renewal process, stating that it is crucial for ensuring that only qualified individuals are allowed to operate in the Nigerian capital market.
In a recent circular, the SEC announced that the renewal process for CMOs would be open from January 1 to January 31, 2025. According to the circular, CMOs applying for renewal must include their 2025 annual subscription receipt from their respective trade groups as part of their application. Failure to complete the renewal process by the specified deadline could result in penalties and potential restrictions on conducting capital market activities.
The SEC introduced periodic registration renewals for CMOs in 2021 to maintain an accurate database of all active and registered operators in the Nigerian capital market. This initiative aims to provide up-to-date information on CMOs for reference by local and foreign investors, regulatory agencies, and the general public. By enforcing yearly renewals, the SEC aims to prevent unethical practices by CMOs that could harm investors’ confidence and negatively impact the Nigerian capital market.
The commission has amended its rules to require CMOs to complete the registration renewal process electronically by January 31, 2025. This digital approach is intended to enhance efficiency and streamline the renewal process for all CMOs. The SEC emphasized the importance of compliance with these regulations to maintain the integrity and stability of the capital market in Nigeria.
CMOs who fail to renew their registration by the deadline risk facing penalties and being barred from conducting capital market activities. The SEC is committed to strengthening its supervision and monitoring of CMOs to prevent unethical behavior and maintain investor confidence in the Nigerian capital market. By enforcing strict renewal deadlines and requirements, the SEC aims to create a transparent and trustworthy environment for all market participants.
In conclusion, the SEC’s reminder to CMOs highlights the commission’s commitment to upholding regulatory standards and promoting transparency in the Nigerian capital market. By ensuring that only qualified individuals are allowed to operate in the market, the SEC aims to protect investors and uphold the integrity of the capital market ecosystem. Compliance with the registration renewal process is essential for all CMOs to continue their operations and contribute to the growth and development of the Nigerian capital market.
