The Nation Newspaper

Tag: Stockbrokers

  • Stockbrokers push for innovative finance, technology to boost economy

    Stockbrokers have identified innovative financial services and products and technology-driven processes as major enablers for the development of the Nigerian capital market and the economy.

    Stockbrokers have thus resolved to bring the issues of rapid changes in technology  and product innovation into the mainstream of national discourse as the Chartered Institute of Stockbrokers (CIS) begins preparations to mark its Silver Jubilee.

    Stockbrokers have also endorsed privatization of moribund enterprises as a way of boosting their efficiency and attracting private sector participation .

    At a media briefing on the annual conference of stockbrokers scheduled for November 16th and 17th, 2017, Chairman, Annual Conference Committee, Mrs Lilian Olubi said that the conference had been packaged to help deepen the market and expand the professional knowledge of the dealing members.

    According to her, as one of the most prestigious professional bodies in the Nigerian financial industry, stockbrokers have, again, sought to elevate the all-important debate of financial market development at their conference with the aim of charting a course forward on policy alternatives.

    “This is reflected in our theme for this year’s edition titled, “Adapting to Dynamic Changes in the Financial Market”. Our choice of this year’s theme was informed by the marked rapid pace of innovations in the economy and capital markets, which require operators – both dealing members and the investing public, to keep abreast of these developments in order to make informed choices,” Olubi said.

    She noted that as businesses seek for alternative ways to raise capital and investors look to further diversify their portfolios from traditional assets, it has become imperative to encourage innovation of financial products.

    She added that the stockbrokers’ conference would be discussing options and strategies for deepening of our local market through introduction of new products’ such as derivatives, commodities, sukuk and alternative assets.

    “Introduction of new products will help deepen the market and expand professional knowledge on diverse investments products, thus encouraging more foreign investors’ participation whilst also developing our finance professionals. Also, advancement of technology in finance profession has become imperative in improving investors’ experience and supporting efficiency drive of stockbrokers,” Olubi said.

    Corroborating her, the CIS’ First Vice President, Mr Tunde Amolegbe assured participants that top government functionaries would participate in the conference.

    Responding to a question, a member of the Organizing Committee, Mr Akeem Oyewale explained that Nigeria’s economy was ripe for trading in derivatives.

    According to him, Nigeria is a large market which largely depends on mono product pointing out that the economy needed to invest in capacity building in order to cope with the challenges of the global economy.

    Another member of the Organising Committee, Mohammed Garuba advised the investors to take advantage of Investment opportunities in the Capital Market in order to enhance their Returns On Investment (ROI)

    Speaking further, Olubi stated that the Nigerian capital market had a lot of potentials for deepening in terms of investment products and private sector participation.

    “Privatisation of public entities which helps to improve their efficiency, will also aid the objective of boosting private sector participation in the capital markets through primary market issuances for debt and equity securities.  Upon highlighting these various topics, it becomes imperative to discuss them extensively to ensure continual development of the Nigerian Capital Market. We have a cream of notable speakers to do justice to the topics,” Olubi said.

  • Regulators mull universal licence for stockbrokers

    Nigeria’s apex financial services regulators have started discussions on a new framework that will expand the scope of operations and allow brokers and dealers at the Nigerian capital market to have access to the interbank market and the primary official discount window.

    The Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator and the Central Bank of Nigeria (CBN), Nigeria’s apex bank are leading other stakeholders to open up a new ecosystem for the stockbroking industry.

    The new ecosystem for the main capital market operators was part of the highlights of the discussions at the second quarter meeting of the Capital Market Committee (CMC) meeting held in Lagos.

    Director General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, who spoke in Lagos at a press briefing on the activities and decisions at the CMC, said the CBN and SEC have launched formal discussions on a dual licence model that enables stockbrokers to have access to the discount window of the apex bank.

    He said all parties have shown commitments to the evolution of the new framework, although discussions were still on to determine the scope and comprehensive details of the new framework.

    Gwarzo said the new model will boost liquidity in the capital market and enhance the risk creation and management of stockbrokers as they will be able to have access to the deep pool of capital provided by the discount window.

    He noted that one of the major challenges in the capital market has been access to liquidity and the introduction of dual licence model will significantly address the problem of liquidity and related issues.

    “Our discussion with the CBN is yielding positive result and we commend the Central Bank for their commitment and dedication to the project, but the discussion is still ongoing,” Gwarzo said.

    Capital market -based intermediation has been much less efficient in Nigeria as operators face significant challenges accessing wide sources of funding and thus have very inefficient sales and trading operations or maturity transformation activities.

    The new framework may allow brokers and dealers to undertake and offer similar range of products and services as investment banks. This convergence will strengthen stockbrokers’ potential to capitalise on larger business opportunities, diversify their source of funding and enhance their market making capabilities in the capital market.

    Gwarzo added that the Commission and other stakeholders have also initiated a pilot electronic reporting and circulation system that could save quoted companies between N500 million and N1 billion in costs of printing and dispatch of annual reports to shareholders.

  • Stock Exchange expels 67 stockbrokers

    Stock Exchange expels 67 stockbrokers

    The  Nigerian Stock Exchange (NSE) has expelled 67 stockbrokers from the stock market.

    This regulatory action is aimed at weeding out unscrupulous and poorly capitalised stockbrokers.

    A regulatory report obtained at the weekend indicated that the expulsion was the final phase of delisting of the stockbroking firms, after their dealing licenses were revoked by the Exchange.

    A source at the Exchange said the expulsion followed recommendation of the Disciplinary Committee of the Council of the Exchange and the final approval of the National Council of the Exchange.

    The latest expulsion brought the number of stockbroking firms that have so far this year been expelled from Exchange to 88 stockbroking firms.

    The Nation last April reported the expulsion of 21 stockbroking firms for infractions ranging from poor capitalisation to unauthorised sales of investors’shares.

    With revocation of dealing licences and expulsion from the Exchange, the 67 stockbrokers will not be able to trade at the Exchange or function in any capacity as a stockbroking agent within the Nigerian capital market. Besides, all former top officials of the firms would have to go through special screening and approval before they could be employed by any other capital market operator.

    The expulsion also implies that the expelled firms will not be able to act as stockbroking agent in other countries that have Memorandum of Understanding (MoU) with capital market authorities.

    The authorities have standing bilateral agreements with several other jurisdictions, including Morocco, Angola, China, Ghana, Kenya, Malaysia, Mauritius, South Africa, Tanzania and Uganda.

    With the expulsion, investors who have their investment accounts with the expelled stockbrokers will be required to move their accounts to other functional stockbroking firms.

    The expelled stockbrokers included ATIF Securities Limited, Abacus Securities Limited, ABC Securities Limited, Akitorch Securities Limited, All Wealth Securities Limited, Apex Securities Limited, Asset Plus Securities Limited, Associated Securities Limited, Avon Finance and Securities Limited, Beachgroove Securities & Investments Limited, Broadedge Securities Limited, Bullion Securities Limited, Cardinal Securities Limited, City Investment Management Limited, Comment Finance & Securities Limited, Corporate Trust Limited, Crown Merchant Securities Limited, Dalgo Investment & Trust Limited, Devcom Securities Limited, Devserv Finance & Securities Limited, EBN Securities Limited, Equity securities Limited, Farida Investment and Finance Limited, Gilts and Hedge Finance Limited, Global Investment & Sec Limited, Goldworth Securities Limited, Haggai Investment & Trust Limited, Halsec Finance Limited, HP Securities Limited, Investicon Nigeria Limited, Investment Resources Limited, Island Securities Limited and Jenkins Investments Limited.

    Others included Kapital Securities Limited, Lozinger Securities Limited, M&M Securities Limited, M. J Securities & Investment Limited, Majestic Securities Limited, Matrix Capital Management Limited, MBA Securities Limited, MBCOM Securities Limited, Merchant Securities Limited, Metropolitan Trust Nigeria Limited, MMB Securities & Trust Limited, MMG Securities Limited, Nationwide Securities Limited, New Horizons Finance and Investment Limited, Nigbel Securities Limited, Omega Securities Limited, Omnisource International Limited, OpenGate Finance Company Limited, Pacific Securities Limited, Pamal Finance Limited, Peak Securities Limited, Prime Securities Limited, Prudent Stockbrokers Limited, Royal Securities Limited, Source Finance and Trust Company Limited, Supreme Finance & Investment Co. Limited, Synergy and Assets Trust Limited, Thomas Kinsley Securities Limited, Tradestamp Securities Limited, Trust Securities Limited, Unit Trust Securities Limited, Universal Securities Limited, Viva Securities Limited and Wintrust Limited.

    Capital market authorities had earlier in the year expelled 21 stockbroking firms including Allbond Investment Limited, Consolidated Investment Limited, Dakal Services Limited, Emi Capital Resources Limited, First Equity Securities Ltd, Ideal Securities Limited, Maninvest Asset Management Plc, Metropolitan Trust Nigeria Limited, Omas Investment & Trust Company Limited, Pennisula Asset Management & Investment Company Limited, Prudential Securities Limited, Securities Trading & Investments Limited, Transglobe Investment & Finance Company Limited, Tropics Securities Limited, Wizetrade Capital & Asset Management Limited, WT Securities Limited, and Zuma Securities Limited.

  • Stockbrokers brainstorm on economic development

    Stockbroking firms under the aegis of Association of Stockbroking Houses of Nigeria (ASHON) is holding a capital market summit to brainstorm on the strategic importance of the Nigerian capital market in effective implementation of the Economic Recovery and Growth Plan (ERGP) and 2017 budget.

    Chairman, Association of Stockbroking Houses of Nigeria (ASHON), Chief Patrick Ezeagu, said the summit scheduled for next week in Lagos would create a platform to identify means by which the Federal Government can salvage the economy.

    He noted that the theme of the summit: The Road to Nigeria’s Economic Recovery- The Capital Market Route, was borne out of the desire to sensitise the Federal Government and other tiers of government as well as private sector players and investors on the critical roles the capital market can play towards the achievement of the objectives of the ERGP and successful implementation of the 2017 budget.

    He pointed out that the capital market primarily helps to mobilize funds from the surplus economic units and channels them to the deficit ones.

    “This underscores the fact that government’s budget deficit gap and critical infrastructure development can be financed through the instrumentality of the capital market. Indeed, the history of our capital market in Nigeria is robust with several times in the past when governments at various levels took advantage of the market to raise funds to execute infrastructural projects,”  Ezeagu said

    He added that the professional body has also concluded arrangements to grant awards to a few individuals for their sustained contributions to the growth and development of the capital market.

    The summit is expected to come up with recommendations on how to turn around the economy and the capital market in particular.

    In his remarks, Vice President, Association of Stockbroking Houses of Nigeria (ASHON), Mr Akin Akeredolu-Ale noted that the relative stability in the foreign exchange market and good corporate earnings are part of the factors driving the stock market currently and they are sustainable.

  • Stockbrokers eye improved operations with cloud technology

    tockbroking chiefs and major stakeholders in the capital market are confident that the adoption of a cloud-enabled operational technology by the Nigerian stockbroking industry will improve efficiency.

    Marlin, a cloud-based stockbrokerage application, was introduced to the stockbroking community at a seminar at the Nigerian Stock Exchange (NSE) in Lagos. Marlin, which automates the entire process and workflow of all brokerage firms, was launched in Nigeria by Info Tech Financial Technologies Limited,

    Speaking at the end of the seminar, stockbrokers and other stakeholders said the cloud-based application was capable of impacting the market in many positive ways.

    Immediate past chairman, Association of Stockboroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike said Marlin will enhance the speed of doing business and transparency while also linking the Nigerian brokerage community to the global markets.

    “The whole  market has changed and given where we are in the information communication technology space,  the product has come at the right time and the benefits are numerous for us to take advantage of,” Madubuike said.

    General manager, operations,   Central Securities Clearing System (CSCS) Plc, Dr.  Joe Mekiliuwa said the application was a robust one that would enable the brokerage community to optimise the straight through process (STP) to interact with the Nigerian Stock Exchange (NSE) and other participants.

    According to him, with Marlin, stockbrokers would be able to relate with CSCS better and with more accurate data.

    “It means that if the brokers try to communicate with us, it will be in an more organised way and seamlessly, they will be able to relate with us because if they keep good records, one way or other it will impact on us positively,” Mekiliuwa said.

    Chief executive officer, InfoTech Financial Technologies Limited, Mr. Amir Khan, said it would enable brokers to concentrate on their core business strategies and processes, while leaving the company to handle the technological front.

    He pointed out that Marlin automates the entire business process and workflows of brokerage firms adding that the product offers numerous business advantages such as increased efficiency, better risk management, low cost and ability to manage trade cycle from order to settlement through one system.

    Khan listed some of the features of Marlin to include: adherence to know-your-customer policy for improved compliance; browser based geographically independent access which is user friendly; support to manage multiple branches and with privileged access capability for respective branch to do local distributed processing; support of multiple asset classes, integration with central depository for quick reconciliation; and multiple settlement types at instrument level smooth data migration.

    He outlined that the back-office module of Marlin manages entire cycle from account registration to settlement and offers a number of business advantages in the areas of operational efficiency, transparency, customer experience and improved control.

  • NSE expels stockbrokers, accountant over ‘fraud’

    NSE expels stockbrokers, accountant over ‘fraud’

    The Council of the Nigerian Stock Exchange (NSE) has kicked out three stockbrokers and an accountant for fraudulent sale of client’s shares.
    They are Mr. Taju Folaji, Mr. Ichie Mike Ejezie and Mr. Segun Adebayo Adams. The accountant is Mr. Olorunfemi Ayorinde. He could be reported to the Institute of Chartered Accountants of Nigeria (ICAN) for further disciplinary action, according to a source.
    This brings the number of stockbrokers expelled so far this year to seven.
    A document obtained by The Nation at the weekend indicated that the Disciplinary Committee of the NSE, indicted the affected for shares fraud.
    The stockbrokers, who were members and authorised dealers on the Exchange, were stripped of their registration and authority to trade on the NSE for selling shares belonging to their clients without the mandate and consent of the clients.
    Also, the accountant, who was in a stockbroking firm, was blacklisted from carrying out capital market activities with dealing member firms of the Exchange for engaging in “unauthorised transfer and sales of clients’ shares”.
    The stockbrokers would also be subjected to further disciplinary procedures by the Chartered Institute of Stockbrokers (CIS) and the Securities and Exchange Commission (SEC), two institutions that also share jurisdictions on ethics, discipline and compliance at the capital market.
    The NSE had earlier this year expelled three stockbrokers – Mr Ayokunle Oyedeji, Mr Abioye Eluwole and Mr Gregory Otsu for a similar offence.
    “Dealing members are strongly advised not to engage in any activity with the above listed individuals,” the NSE stated in a circular on the expulsion.
    With the expulsion, the indicted stockbrokers and accountant will also not be able to work in any stockbroking and investment firms in Nigeria, according to Rule Six, subsection 12 of the NSE Rules.
    Under the rule known as “Specific Actions Requiring Prior Consent of The Exchange”, a dealing member shall not be allowed to employ some categories of persons without the prior written consent of the NSE.
    These include directors, authorised clerks or other persons including principal officers, such as the chief executive officer, chief finance officer, chief compliance officer and chief risk officer, who have been indicted by the NSE or Securities and Exchange Commission (SEC).
    Others include any person who was an officer or employee of a dealing member expelled from the Exchange, any person expelled, as an authorised clerk or its equivalent, from any other Exchange, any person refused admission as a member of the Chartered Institute of Stockbrokers (CIS), or any person expelled from its membership, any person expelled as a member of any professional association or institute and any person who is insolvent or has been convicted of theft, fraud, forgery, or any other crime involving dishonesty.
    The Exchange had recently started the implementation of newly amended rules aimed at tightening the noose on unauthorised sale and transfer of shares by unscrupulous stockbroking firms and traders.
    Under the amended rules, it could withdraw the dealing licence of any erring stockbroking firm and trader as well as impose fines not less than N1 million on any offender.
    According to the rule, no dealing member shall sell or transfer any securities without the authorisation of the owner.
    “A dealing member that has sold or transferred any securities without the authorisation of the owner shall not be permitted to keep any benefits accruing from such transaction, including but not limited to bonuses, rights, commissions, cash dividends, capital appreciation, and any profit accruing therefrom whatsoever,” the rule stated.
    Any dealing member that sells or transfers securities without the authorisation of the owner shall be required to buy back the securities along with any accrued benefits within a period of 14 business days.
    Besides, where the unauthorised sale transaction is worth N5 million and below in value, the erring stockbroking firm will be liable to pay a fine of N1 million or three times the value of the sale or transfer, whichever is higher, and N5,000 for every day from the day on which the dealing member is required to buy back the securities by the Exchange until the day the dealing member completes buying back the shares for the owner.
    Also, NSE has also started implementing its “naming and shaming” rule, which empowers the Exchange to notify the public of suspensions and expulsions of any stockbroking firm.
    According to the rule, it shall have power to publish in the local newspapers or circulars to dealing members and other members of the Exchange, the name of any member expelled or suspended by the Exchange, or any authorized clerk whose registration has been revoked by the Exchange, and also to publish such expulsion, suspension or revocation in any other way it may deem fit.

  • Stockbrokers to review economic transformation at investiture

    The Chartered Institute of Stockbrokers (CIS), the regulatory body for the practice of stockbroking in Nigeria, will inaugurate its new president and chairman of council next week with a strategic review of the roadmap for the Nigeria’s economic transformation.

    The investiture of the new president of the institute, Mr Oluwaseyi Abe, scheduled for next week in Lagos, is expected to be a melting point for national discourse as it will attract top government functionaries, seasoned technocrats, frontline stockbrokers and national opinion leaders.

    Under the theme: “Growth, The Only Nigerian Imperative” the event is expected to focus on the practical approach towards putting the Nigeria’s economy on the path of double growth digits as a prelude towards its total transformation.

    Specifically, the forum would enable experts to review the government’s current efforts to economy and propose credible options to take advantage of the capital market to finance infrastructural development.

    Vice President, Professor Yemi Osinbajo is expected to deliver a keynote on the new Nigerian economy while executive vice chairman, Travant Group, Mr Mustapha-Chike Obi, is the guest speaker. Discussants included Mr Bismarck Rewane, Professor Charles Soludo, Emir Sanusi Lamido, Dr Doyin Salami and the president, Issuing Houses Association of Nigeria, Mr Sunny Ayere.

    Abe was elected the president of the institute in April this year alongside Mr Adedapo Adekoje and Mr Tunde Amolegbe as the first and second vice president respectively.

  • Rencap, CSL Stockbrokers place 100% return on UBA

    Leading investment pundits at Renaissance Capital and CSL Stockbrokers have described United Bank for Africa (UBA) Plc as a very attractive stock with potential to generate returns of more than 100 per cent within a 12-month period.

    Renaissance Capital and CSL Stockbrokers placed their “buy” sticker on UBA, underlining the attractiveness of the stock in spite of the general downtrend at the stock market. Renaissance Capital indicated that UBA could reach a price of N9.40 per share while CSL Stockbrokers, a member of FCMB Group, stated that UBA could trade at N7.21 per share. On the average, analysts’ consensus placed target price of N8.50 per share for UBA for the 2016 business year. UBA’s share price opened today at N4.60 per share.

    The investment case for UBA followed its strong financial performance in the first quarter of 2016 as well as its improved transparency and disclosure, which are now seen as benchmarks for Nigerian banks. Reflecting investors’ conviction in the strong fundamentals of the bank and the appetite for the stock, the share price had already gained 39 per cent so far in 2016 to rank as one of the best performing stocks on the Nigerian Stock Exchange (NSE).

    At N4.60 per share today, analysts hold that UBA still trades at significant discount to the intrinsic consensus valuation of the bank. UBA has maintained an average return on equity of over 20 per cent in the past three years, bucking the challenging economic environment and dwarfing peer performance track.

    The bank paid interim dividend of 20 kobo and final dividend of 40 kobo, bringing total dividend for the 2015 business year to 60 kobo.

    Market analysts at the weekend said they expected the first half report of the bank to be audited in line with UBA Group’s governance culture of auditing results twice in a year. UBA is audited by PricewaterhouseCoopers, one of the four global audit firms.

    Key extracts of the audited report and accounts of UBA for the year ended December 31, 2015 showed that gross earnings rose by 10 per cent while profit after tax grew by 25 per cent. On the back of the improved earnings, the bank paid a final dividend of 40 kobo per share, bringing the total dividend payout per share to 60 kobo or N21.77 billion.

    UBA Group’s gross earnings closed 2015 at N314.83 billion as against N286.62 billion recorded in 2014. Profit before tax rose from N56.20 billion to N68.45 billion. Profit after tax also increased from N47.91 billion to N59.65 billion. Earnings per share thus improved from N1.53 in 2014 to N1.79 in 2015.

    UBA’s investment outlook has also been strengthened by Fitch International, one of the foremost global rating agencies, and Augusto & Co, a leading Nigerian rating agency, which scored the bank high on its fundamentals.

  • Stockbrokers’ chief harps on investor’s education and training

    Stockbrokers’ chief harps on investor’s education and training

    Chartered Institute of Stockbrokers (CIS) President, Mr. Oluwaseyi Abe, at the weekend stressed the importance of investor education and acquisition of relevant skills as part of the catalysts for the development of the Nigerian capital market.

    Abe, who led the council of the CIS on a courtesy visit to the Nigerian Stock Exchange (NSE) at the weekend in Lagos, said investor education has become more compelling as new products are being introduced into the, noting that the more investors understand the benefits and risks of investment in the capital market, the better for the long-term sustainable development of the market.

    He said the CIS places premium on the need to intensify efforts aimed at creating more awareness on the relevance of the market to all categories of existing and potential investors.

    He pointed out that while the market seemed gloomy at the present, there is hope that it would bounce back.

    He noted that other exchanges such as National Association of Securities Dealers (NASD), FMDQ Plc and Abuja Commodities Exchange have created alternative platforms for stockbrokers to practice, adding that the new trend in the financial market required additional skills on the part of stockbrokers.

    He assured the NSE of continued collaboration of the institute in order to build a strong and virile capital market in Nigeria.

    He urged the stockbrokers to work very closely with the CIS for enhanced professional development in view of the expanding nature of capital market operations, noting that the institute’s Continued Professional Development (CPD) programme had been expanded to bridge the skill gaps and position the stockbrokers to key into emerging opportunities.

    While pointing out that capital market regulators and operators had always worked on the same goal of market development, Abe said collaborative efforts have become more compelling in view of the challenges of globalisation.

    He reiterated that the CIS would always be prepared to partner individuals and institutions that share common values on the growth and development of the capital market.

  • Stockbrokers in emergency meeting over demutualisation, capital base

    Chief executives of stockbroking firms in Nigeria have convened an emergency meeting for today to discuss the twin challenge of demutualisation and capital requirement.

    A source in the know said the stockbroking chiefs would be meeting under the auspices of the Association of Stockbroking Houses in Nigeria (ASHON).

    The main agenda at the emergency meeting included the ongoing efforts at demutualisation of the Nigerian Stock Exchange (NSE), the Minimum Operating Standards (MOS) policy of the NSE and minimum capital requirement.

    While the details of the concerns of the chief executives on the three burning issues were still sketchy as at the press time, a source in the know said that stockbroking firms, which constitute the largest trade group and owners of the Exchange, would seek to synchronise the implementation of the demutualisation with the ongoing enforcement of the MOS in order not to short-change stockbrokers.

    The source noted that while most members are in support of demutualisation, stockbroking chiefs are concerned that the move by the Exchange to weed out firms with inadequate MOS ahead of the conversion of their membership rights to tradable equities would be unfair.

    The Nation had reported exclusively that most stockbroking firms failed the MOS inspection conducted by the NSE. The Exchange has scheduled a follow-up inspection between February 29 and May 31, 2016 to ascertain the compliance level of the ill-equipped firms.

    The earlier inspection report by the NSE obtained by The Nation indicated that 44 per cent of the stockbrokers fell below minimum average while 31 per cent were on the fringe of average. Only 25 per cent of stockbroking firms are operating with the acceptable minimum operating standards.

    The NSE had conducted inspections of capital market firms between August and December 2015. The inspection report indicated that a total of 223 firms were inspected during the 18-week period including 192 broker dealers, 30 brokers and one dealer.

    The NSE rates firms along a scale of five for the MoS. Based on the MoS rating methodology, 54 firms were fully compliant and scored five points, representing 25 per cent of the population of dealing members inspected. Sixty one firms scored between three and four points, representing 31 per cent, while 108 firms scored two points or less representing 44 per cent of dealing member firms.

    With this discovery, the Exchange plans to do final assessment and follow-up inspection of the 169 firms that scored between 0 and 4 points to review the deficient areas from the 2015 inspection in order to revalidate their level of compliance.

    According to the report, the 169 firms scheduled for the MoS follow-up inspections will be expected to fully comply with the five requirements of the MoS for their registered function.

    “Firms that fail to fully comply will be adjudged to be not compliant with the MoS requirements. Appropriate steps will be taken with respect to these firms to ensure that they exit the market in an orderly manner,” the report indicated.

    Besides, the issue of conversion of the NSE from a member-owned Exchange to shareholder-owned tradable public limited liability company, otherwise known as demutualisation, has been on the front burner.