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Tag: Stockbrokers

  • Stockbrokers mull funding for entertainment industry

    Stockbrokers mull funding for entertainment industry

    The Nigerian entertainment industry was the focus yesterday at the annual conference of the Chartered Institute of Stockbrokers (CIS) with a consensus among key stakeholders that the capital market is the main leverage to unleash the potential of the entertainment industry.

    Key speakers at the conference, with the theme: The Key Catalyst to the Development of the Entertainment Industry in Nigeria, including the director general, Securities and Exchange Commission (SEC), Ms Arunma Oteh and president, Chartered Institute of Stockbrokers (CIS), Mr. Albert Okumagba, agreed that long-term funding from the capital market would provide the much-needed elixir for the development of the entertainment industry.

    According to Oteh, the funding challenge being faced by the entertainment industry in Nigeria can be resolved with long term capital from the stock market.

    She noted that the entertainment industry can provide immense employment and help in solving Nigeria’s unemployment problem if it can surmount the funding challenge adding that SEC has been collaborating with the Nigerian entertainment industry to sensitise Nigerians on the importance of savings and investment.

    “Our plan is to continue to leverage on the industry to teach our children the importance of savings. Since independence Nigeria has had world renowned entertainers. Nigeria is a nation that is grossly misunderstood but the entertainment industry has continued to project a positive image for the country. At the moment, the entertainment industry contributes 4.1 per cent to the nation’s gross domestic products (GDP), this tells you the potential of the industry if it is well funded,” Oteh said.

    She cited the example of United States of America where capital market funding has played prominent role in development of the film industry.

    “In the US, banks raise money from the bond market for lending to movie production houses; the arrangement is typically asset based lending. JP Morgan, one of the largest investment banks in the world has been raising funds for the film industry in the US since 1920. It had expended a $10 billion credit line to the entertainment industry in 2011. There are currently about 20 banks that are raising funds for lending to Hollywood,” Oteh said.

  • Stockbrokers’ recipe for capital market growth

    A new dawn is afoot at the capital market as concerned stakeholders move to boost the fortunes of the sector.

    One of those in the vanguard is the Chartered institute of Stockbrokers (CIS), the umbrella body for players in the stock market.

    Upbeat about the need for paradigm shift in the industry, the President of the institute, Albert Okumagba, while addressing participants at a forum tagged , ‘Brunch with the President’ in Lagos at the weekend, explained that  the institute deemed it necessary at this point to organise the forum , which is the first in the series, to keep members abreast of steps being taken to reposition the institute to become the most strategic professional institute in the country.

    According to him, the institute’s  ongoing aggressive transformation exercise would reposition it for global competitiveness and attract more investors’ participation in the nation’s capital market.

    He explained that CIS was poised to globalise the CIS professional qualification, adding that the new leadership would pursue the passage of the bill which is at the 3rd reading stage at the National Assembly for change of its name to Chartered Institute of Securities and Investment.

    “In the new dispensation, the institute is poised to bring all the practitioners in the Securities and Investment industry to its fold to ensure that the minimum training and certification is maintained for the advancement of the industry in accordance with its statutory powers as it is practiced in other developed market”.

    Okumagba pointed out that the institute was partnering with the Nigeria Commodity Exchange (NCX), formerly, Abuja Securities and Commodity Exchange Plc to establish working relationship in the areas of capacity building and certification programmes that would reinforce the growth of the capital market.

    “We would also embark on brand projects that would situate the institute in the rightful place in the financial market and the Nigerian economy and make it a strong brand across Africa and globally. An important component of this is to work with the National Assembly on the speedy passage of the CISI Bill”.

    Echoing similar sentiments, the Chief Executive Officer of Kitari Consult Limited, Ali Megashi, noted that the steps the CIS was taking to reposition the institute would deepen  financial inclusions in the market.

    He urged every CIS member to ensure full participate to move the institute forward, noting that there was need to move the market from the current domination of equities to becoming a debt market in a near future.

    “The financial inclusion would be enhanced by our role in CIS which would also move the market from  being more of equities to a debt market and this would enable the market to finance long-term projects that would revolutionalise the economy.”

    The Chairman, Finance Committee of the institute, Abubakar Lawal said:  ‘’We should bring the institute to the national space, giving our contributions to the economy and to make this happen, we need to reposition our finance, we must be financially strong. We can not do all by ourselves, we must have very qualified men.

    “We should look at the next 18 months together and by 2016, we should have surpassed everything we are considering today.

    He explained that the administration meet a negative of N109million on resumption of office, adding that the institute needed to achieve N5billion mark to achieve its objectives.

    “We have identified banks, investment banking groups, and governmental organisation that we would work with, and we need about N5 billion. We are still at the take up stage. We need the commitment of our members. There is a lot we can do by resolving to move in one direction as a team, “ he added.

  • Stock Exchange to sanction stockbrokers over reporting failure

    The Nigerian Stock Exchange (NSE) will impose sanctions on stockbroking firms that fail to submit their stockbroking transaction report for the just concluded month ended August 31, 2014 by the close of business on Wednesday September 10.

    In a circular to stockbroking firms, obtained by The Nation, the exchange indicated that it would impose regulatory sanctions including financial penalties on stockbroking firms that fail to meet the September 10 deadline. The sanctions will be imposed with effect from Thursday September 11.

    The NSE uses the transaction report to track inflow and outflow of foreign transactions, major deals in the market and to monitor the market to ensure suspicious sources are not using the stock market to launder ill-gotten funds or finance terrorism.

    The circular was signed by head; broker dealer regulation, Nigerian Stock Exchange, Mr. Olufemi Shobanjo.

    According to the circular, the submission of transaction report is in line with Article 14 of the rules and regulations governing dealing member firms of the Exchange which requires every dealing member to keep proper records and books of account in respect of all stockbroking transactions.

    “The council shall prescribe the forms in which such records and books are to be kept by dealing members and be entitled to empower the compliance department of the Exchange to inspect the records of dealing members from time to time and report thereon to the council,” the rule stated.

    It should be recalled that the NSE had earlier this year introduced uniform accounting year for all its dealing members. According to the directive, stockbrokers and dealers on the NSE will now run the normal Gregorian calendar year as their uniform business year, with every company expected to close its accounts by December 31.

    The new directive, which will take effect not later than December 31,  brings stockbrokers and dealers to the same standards as banks, which also run the Gregorian calendar year as industry-wide accounting year.

    According to the NSE, the uniform accounting year was in order to ensure consistency and more effective regulatory oversight.

    “Consequently, all affected dealing members should as a first step, pass board resolutions to the effect that their accounting year end will be December 31 and, thereafter, inform the Exchange and other relevant agencies accordingly,” NSE stated.

  • Why we want to delist inactive stockbrokers, by NSE

    Why we want to delist inactive stockbrokers, by NSE

    The Nigerian Stock Exchange (NSE) yesterday formally announced its plan to revoke the licences of inactive stockbroking and dealing firms.

    In a statement, the NSE said it has decided to revoke the licences of inactive stockbroking firms because most of the infractions and market abuses at the stock market have been linked to them.

    According to the NSE, the move is in line with its  commitment to maintain the integrity of the capital market and further protect investors.

    The NSE stated that it would revoke the licences of stockbroking firms that have been inactive for six consecutive months under new rules that authorises the NSE to revoke licences of inactive firms. The rules, approved by the Securities and Exchange Commission (SEC), categorised inactivity into voluntary and involuntary inactivity.

    Head, Legal and Regulation Division, Nigerian Stock Exchange (NSE), Ms. Tinuade Awe, said the NSE has observed that majority of the prohibited practices in the market have been linked to inactive firms noting that the new rule on revocation of licences of inactive firms is aimed at further sanitizing the market to protect investors.

    She explained that voluntary inactivity occurs where the dealing member firm has not engaged in any trading activity for a consecutive period of six months without being suspended by the Exchange or the SEC.

    According to her, involuntary inactivity occurs where a dealing member firm has been suspended from trading activities by the NSE or the SEC by reason of any infraction committed by that dealing member firm and it has not carried out any trading activity within the stipulated six months period.

    “The powers of the Exchange under this SEC-approved rule will be exercised judiciously and will take into account all the circumstances surrounding each individual case as well as the interests of all stakeholders, particularly the investors,” Awe said.

    Head, Broker Dealer Regulation, Nigerian Stock Exchange (NSE), Mr. Olufemi Shobanjo, however assured that the NSE would continue to exercise the utmost care and diligence in enforcing its regulations.

  • ‘My agenda for stockbrokers’

    The Chartered Institute of Stockbrokers (CIS) would enhance  its capacity for training and professional development  to ensure the highest quality of human capital for the Nigerian and sub-Saharan African capital markets.

    Its new president, Mr. Albert Okumagba, who spoke at his investiture  on Monday,  outlined the main agenda of his administration to include creation of knowledgeable professionals that will help deepen the Nigerian financial markets.

    According to him, the CIS would enhance its professional training to provide the requisite professionals to trade on the four markets platform including the Nigerian Stock Exchange, NASD Plc, FMDQ Plc and the Nigerian Commodities Exchange as stipulated in the institute’s charter.

    He said the institute has set an ambitious, but achievable target of training 1,500 students in 2014 and one million students by the end of 2015.

    Okumagba added that the institute would work with other capital market stakeholders in the public and private sector to craft a Nigerian saving strategy that will embrace all platforms in the financial system.

    He also highlighted that his administration would work to move the CIS to its permanent  head office that would house its secretariat as well as create additional income streams.

    Okumagba noted that after 22 years of the institute value-adding existence, providing the needed human capital base for the capital market, it is unacceptable that the CIS operates its secretariat in rented premises.

    “As we work on changing our story, we will also undertake a comprehensive rebranding of the institute to take its rightful place in the financial market and the Nigerian economy. We will develop a new, differentiated identity in the minds of our different publics and distance ourselves from the negative connotations of the past. We will work to ensure that our members are proud of their association,” Okumagba promised.

     

  • SEC, stockbrokers, others seek middle course on capital requirements

    SEC, stockbrokers, others seek middle course on capital requirements

    The Securities and Exchange Commission (SEC), stockbroking firms and other stakeholders are reviewing the new capital requirements for capital market operators.

    SEC had introduced new capital requirements for all capital market functions with a deadline of December 31 for full compliance.

    President, Chartered Institute of Stockbrokers (CIS), Mr. Albert Okumagba, said stockbrokers and other stakeholders are engaging SEC on the new capital requirements with a view to finding a common ground that will be mutually beneficial to the interests of the regulators and the capital market operators.

    He said the engagement process could likely result in an announcement by the stakeholders by the end of the third quarter, three months to the deadline earlier set by SEC.

    “We believe it’s going to be a win-win resolution for the regulator and the operators,” Okumagba said.

    SEC had announced major increases in minimum capital requirements for capital market functions under a new minimum capital structure that is expected to take off by January 1, 2015.

    The apex capital market regulator increased minimum capital base for broker/dealer by 329 per cent from the existing N70 million to N300 million. Broker, which currently operates with capital base of N40 million, will now be required to have N200 million, representing an increase of 400 per cent. Minimum capital base for dealer increased by 233 per cent from N30 million to N100 million.

    Also, issuing houses, which facilitate new issues in the primary market, will now be required to have minimum capital base of N200 million as against the current capital base of N150 million. The capital requirement for underwriter also doubled from N100 million to N200 million.

    Trustees, rating agencies and portfolio and fund managers had their minimum capital base increased by 650 per cent each from N40 million, N20 million and N20 million to N300 million, N150 million and N150 million respectively.

    A  Registrar will have a minimum capital base of N150 million as against the current requirement of N50 million. While the minimum capital base for corporate investment adviser remained unchanged at N5 million, individual investment advisers will have to increase their capital base by 300 per cent from N500,000 to N2 million.

    While a source at SEC had insisted to The Nation that the board of SEC would stick to the December 31, 2014 deadline for the implementation of the new capital requirements for capital market operators, there has been a groundswell of opposition to the new capital requirements, which operators believe were aimed at indirectly reducing the number of operators.

    The source at SEC had insisted that the apex capital market regulator carefully weighed all the options before deciding on the new capital requirements and the deadline.

    According to the source, the Commission decided on the new capital requirements in the best interest of the capital market as poor capitalization was partly responsible for the recent recession and cases of malpractices in the market.

    “The downtrend in the past was due to laxity in the regulatory framework and operators’ malfeasance. Everyone has acclaimed the improvement in the regulatory environment, so when you strengthened the regulatory surveillance, you must have stronger operators with adequate capital and relevant competencies to ensure stable market growth,” the source said.

    The source noted that inadequate capital has been undermining market growth as operators have not been able to respond to market growth initiatives being promoted by the regulators. The source cited the example of infrastructure fund, which has not generated any strong interest among operators.

    Earlier, leading stockbroker and Chairman of Capital Bancorp, Mr Olutola Mobolurin, urged the Commission not to use arbitrary regulation to enforce consolidation noting that both the capital market regulators and operators should find a common ground to ensure a smooth consolidation process.

    Mobolurin, who also chairs the NASD Plc and Custodian and Allied Plc, said consolidation should not be artificially imposed by resort to mandatory statutory capital requirements as capital alone does not make an institution viable.

    According to him, capital can be adequate or not while over-capitalisation is just as bad as under-capitalisation.

    Capital market operators argued that the new capital requirement structure- which retained the previous trend of fixed capital base for a designated function, failed to sufficiently address the peculiarities of the various capital market functions.

    Stockbrokers under the auspices of Chartered Institute of Stockbrokers (CIS) and Association of Stockbroking Houses of Nigeria (ASHON) had stated that the new capital requirements did not reflect the underlying structures and feelings of the market.

     

  • Stockbrokers screen 16 firms, others for NSE’s council

    Stockbrokers screen 16 firms, others for NSE’s council

    Stockbrokers under the auspices of the Chartered Institute of Stockbrokers (CIS) and the Association of Stockbroking Houses of Nigeria (ASHON) have drawn a preliminary list of firms and individuals eligible for election into the council of the Nigerian Stock Exchange (NSE).

    The NSE has scheduled its crucial annual general meeting for July. At the meeting, members of the Exchange are expected to undertake massive overhaul of the council. Besides the election of new council members, president of the NSE, Alhaji Aliko Dangote, has indicated he intends to step down and not seek re-election, paving the way for the first vice president, Mr. Aig Aig-Imokhuede, to take over  as president of the council.

    The council of the NSE is the apex governing body of the self regulatory organisation and it I responsible for providing oversight for the Exchange’s business and financial affairs, strategy, structures and policies; monitoring the exercise of any delegated authority; and dealing with challenges and issues relating to corporate governance, corporate social responsibility and corporate ethics.

    Sources told The Nation that stockbrokers had formed an election committee, which screened eligible stockbroking firms and stockbrokers that could be elected into the council.

    The election committee is chaired by leading stockbroker and investment banker, Mr Chike Nwanze, vice chairman and chief executive of Icon Stockbrokers while Mr Akin Akeredolu Ale, a director in Abuja-based stockbroking firm-DSU Brokerage Services Limited and general secretary of the Association of Stockbroking Houses of Nigeria (ASHON), is the secretary of the election committee.

    A source said the committee has screened and submitted names of 16 stockbroking firms and stockbrokers for further regulatory screening. The stockbroking firms and their representatives included Meristem Securities Limited and Mr. Oluwole Abegunde, Cashville Investment  & Securities Limited and  Ejeize Ifeyinwa Rita, Signet Investment & Securities Limited and Mr. Aina Oladipo, ICMG Securities Limited and Osime Michael, Trust Yields Securities Limited and Alhaji Rasheed Yussuff and BGL Securities Limited and Mr. Chibundu Edozie.

    Others included Stanwall Securities Limited and Mr. Ofonagoro Onyedikachi, Sigma Securities Limited and Dunama Balami, Greenwich Trust Limited and Mr. Kayode Falowo, Interstate Securities Limited and Mr. Akintunde Odunsi, Fortress Securities Limited and Mr. Yomi Adeyemi, Gem Assets Management Limited and Osagie Ediale, Rencap Securities Limited and Dan Ugwuoke, Vetiva Securities Limited Mr.  Chukuka  Eseka, Finmal Financial Services Limited and Umaru Kwaranga and Nigerian Stock brokers Limited, which is being represented by Mr. Bosun Adekoya.

    Sources said the preliminary list would still be subjected to further scrutiny by both the NSE and the Securities and Exchange Commission (SEC).

  • Stockbrokers expel member over unprofessional conduct

    The Chartered Institute of Stockbrokers (CIS), the self-regulatory body that regulates the practice of stockbroking and serves as the umbrella body for all stockbrokers, has expelled one of its member; Mr. Akinwale Olagundoye.

    Olagundoye had been found guilty of unprofessional conduct by the CIS Disciplinary Tribunal on March 28, 2013. He however appealed against the judgement of the Tribunal to the Federal High Court, Lagos. The Federal High Court, Lagos on March 28, 2014 dismissed his appeal.

    Secretary to the CIS Disciplinary Tribunal, Mr. Babatunde  Odofin, said with the dismissal of the appeal, Olagundoye’s name was accordingly removed from membership of the institute with effect from March 28, 2014.

    “Olagundoye is therefore barred from operating or presenting himself as a chartered stockbroker or a member of the institute under any circumstance,” Odofin stated in a statement.

    On the other hand, Odofin said another stockbroker, Mr. Peter Temidayo Ola, who had been suspended last year, has been readmitted as a member of CIS. Ola  was found guilty  of infamous conduct contrary to and punishable under Regulations 5(vi), 5(vii) and 5 (xii) and section 11(1)(a) of the CIS Act of 1992.

    He was said to have collected the sum of N320, 000 from two persons under the false pretence that he had shares of Friesland Campina Wamco Nigeria when he knew in actual fact he had no such shares to sell. He did this between May and June 2009.

    But Odofin said Ola brought an application last December for re-admission having re-purchased 1,000 units of shares of Friesland Campina Wamco Nigeria including   the outstanding dividends and bonuses for the two complainants.

    “The Tribunal considered the application which as not opposed by the prosecution. In this circumstance, the Tribunal hereby orders that the applicant be and is hereby relisted as a member of the Institute with effect from April 1, 2014. The Tribunal, however, would like to sound a note of warning that in the future, the applicant must in all circumstances comply with the rules and regulations of the institute. He is also under obligation to uphold the ethics of the profession to which he subscribed and swore as a stockbroker,” Odofin said.

    Meanwhile, the chief executive officer and registrar, Chartered Institute of Stockbrokers (CIS), Mr. Adedeji Ajadi, has stressed the importance of standardization of training and certifications across all functions in the capital market.

    According to him, there is the need for standardization of training and certification to ensure that only qualified and competent professionals operate in the market in order to ensure that market operators are subject to regulation and discipline, as appropriate.

    He noted that in order to improve investors’ confidence, all stakeholders need to continue to work together to foster transparency and good corporate governance structures in the market.

    “We need to put structures in place to ensure that investors’ funds are safeguarded. Charlatans and quacks should not be allowed to handle investors’ funds and transactions in the capital market. The CIS is playing a major role along this line. We also need to educate investors and prospective investors. Financial literacy will build investors confidence. It is heart-warming that the regulators; SEC, NSE, as well as CIS are currently putting in a lot of efforts along this line,” Ajadi said.

    He added that the CIS’s annual national workshop provides platform for national development as it brings together key players in both the public and private sectors of the Nigerian economy to engage, and generate ideas which will serve as useful input to the national budget and enhance the quality of the policy making process.

    “Our experience at the three national workshops held so far has proven that we are on the right track. Increasingly, we are getting the attention of the key drivers of the public and private sectors in the economy who are eager to contribute in all ways possible to making future workshop more successful. We are aware that the capital market is a major segment that drives national economy through mobilization of savings and creation of investment opportunities. On an on-going basis, we need to continually highlight the critical link between the capital market and other key sectors of the economy,” Ajadi said.

    According to him, there is need to keep mobilising all stakeholders to participate actively with everybody coming together once in a year to deliberate, brain storm and share ideas not only on critical issues affecting the capital market, but also the Nigerian economy as a whole.

  • Fed Govt, Stockbrokers mull new funding for power firms

    The Federal Government and stockbrokers at the weekend reached consensus on the need to collaborate on a viable mechanism to provide long-term capital to support recently privatized power companies.

    The Federal Government, through the Ministry of Power, and Chartered Institute of Stockbrokers (CIS), the self-regulatory body that regulates the stockbroking practice, at the 3rd annual national workshop of the CIS expressed willingness to work together to address the financial challenges of the power firms.

    The Federal Government had in 2013 sold the unbundled power companies from the defunct Power Holding Company of Nigeria (PHCN) to private investors. Ten electricity distribution companies (discos) and five generation companies (gencos) were privatized and sold to new core investors.

    However, funding has remained a lingering challenge as the new investors struggle to raise huge funds required to rehabilitate the power companies and stabilize power supply to the populace.

    Worried by the funding challenge, Minister of Power, Professor Chinedo Nebo, at the weekend said the ministry was ready to work with the CIS to provide amenable funding for the discos and gencos.

    According to him, government is willing to work with the stockbroking community and other stakeholders in the capital market to overcome the funding challenge facing the power companies.

    President, Chartered Institute of Stockbrokers (CIS), Mr. Ariyo Olushekun, said stockbrokers would work with the government to create innovative financial solutions for the power companies noting that the Nigerian capital market has the capacity to meet the financing needs of the power companies.

    Nebo, who spoke through his senior special adviser, Mr. Frank Edozien, reiterated that government was committed to the delivery of steady power supply to the nation in a not too distant future and was doing everything possible to realise that aspiration.

    “The ministry of power is determined to deliver on the power agenda and we are willing to collaborate with CIS and the entire capital market community in that regard,” Nebo said.

    Olushekun commended the efforts of the Minister aimed at ensuring that the country enjoys steady power supply pointing out that power is very vital for economic development of the country.

    He noted that stockbrokers decided to focus on power and other key sectors because of their importance to the revitalization of the economy.

    “We are determined to keep generating new ideas and strategies, which hopefully, our policy makers will consider and incorporate into the planning process,” Olushekun said.

     

  • NSE queries 53 stockbrokers over dealing status

    NSE queries 53 stockbrokers over dealing status

    •May withdraw operating licence of firms

    The Nigerian Stock Exchange (NSE) has commenced the process to determine the propriety of dealing licence of 53 stockbroking firms, a development that may lead to withdrawal of operating licence of erring stockbroking firms.

    A query by the management of the NSE to the 53 stockbroking firms obtained by The Nation indicated that the stockbroking firms have up till December 19, 2013 to show reasons the NSE should not commence final disciplinary proceedings against them for failure to regularise their operating status and other sundry outstanding regulatory issues.

    The query was signed by Head, Broker Dealer Regulation, NSE, Mr Olufemi Shobanjo.

    A source in the know of disciplinary process of the NSE indicated that the Exchange may withdraw the operating licence of some of the stockbroking firms, which failed to provide tangible reasons to show liquidity, continuous operations and compliance with extant rules on dealing member firms.

    The Nation’s check showed that most of the queried firms had in September been suspended for failure to comply with extant operating rule that requires all stockbroking firms to establish compliance department and appoint accredited compliance officers. The suspension by the NSE implies that they will not be allow to trade at the stock market or act in any issue relating to the capital market, especially as it relates to regulatory approval of the NSE.

    The latest query on regularisation of operating status also referred to “all outstanding regulatory issues”, indicating a build-up of the case against the stockbroking firms.

    The queried dealing member firms included Mainstreet Bank Securities Limited, Standard Chartered Securities Limited and First Atlantic Securities Limited, three brokerage firms owned by banks.

    Other were AAA Securities Limited, Alliance Capital Management Company Limited, Al-pina Investment & Trust Company Limited, BBL Asset Management Limited, BFCL Asset & Securities Limited, BIC Securities Limited, CEB Securities Limited, Colvia Securities Limited, Consolidated Investment Limited, Dakal Services Limited, Decanon Investment Limited, Empire Securities Limited, Enabell Capital & Investment Limited, Epic Investment Trust Limited, Equator Stockbrokers Limited, First Equity Securities Limited, First Express Limited, Folu Securities Limited, Genesis Securities & Investment Limited, Ideal Securities Limited, Indemnity Finance Limited, Integrated & Allied Securities Limited, KFF Worldwide Solutions Limited, Kingdom Securities Limited, Lion Stockbrokers Limited, LMB Stockbrokers Limited, Maninvest Asset Management Plc, Mayfield Investment Limited, Metropolitan Trust Nigeria Limited, Midland Capital Markets Limited, Midlands Investment & Trust Limited and ML Securities Limited.

    Others included Monument Securities & Finance Limited, MultiTrust Securities Limited, Omas Investment & Trust Company Limited, Peninsula Asset Management & Investment Company Limited, Platinum Capital Limited, Professional Stockbrokers Limited, Prudential Securities Limited, Regency Financing Limited, RIV Trust Securities Limited, Riverside Trust Limited, Securities Trading & Investment Company Limited, Sikon Securities and Investment Trust Limited, Trans Lux Services Limited, Transglobe Investment & Finance Company Limited, Tropics Securities Limited, Truebond Capital & Asset Management Limited, WT Securities Limited and Zuma Securities Limited.

    The NSE had in September suspended 39 stockbroking firms for failure to establish compliance department and appoint accredited compliance officers.

    The suspended stockbroking firms included Wema Asset Management Limited, Epic Investment Trust Limited, Equator Stockbrokers Limited, First Atlantic Securities Limited, Folu Securities Limited, Genesis Securities and Investment Limited, Ideal Securities Limited, Indemnity Finance Ltd, Mannivest Securities Limited, Metropolitan Trust Nigeria Limited, Midland Capital Markets Limited, Midlands Investment and Trust Limited, ML Securities Limited, Monument Securities and Finance Limited, Omas Investment and Trust Company Limited, PML Securities Limited, Professional Stockbrokers Limited, Prudential Securities Limited and Regency Financial services.

    Others included AAA Securities Limited, Alliance Capital Management Company Limited, BFCL Asset and Securities Limited, BIC Securities Limited, CEB Securities Limited, Colvia Securities Limited, Consolidated Investment Limited, Dakal Services Limited, Dependable Securities Limited and Empire Securities Limited.

    Also suspended were RIV Trust Securities Limited, Riverside Trust Limited, Securities Solutions Limited, Securities Trading and Inv. Co., Sikon Securities and Investment Trust Limited, Transglobe Investment and Finance Company Limited, Tropics Securities Limited, WT Securities Limited, Zuma Securities Limited and Bauchi Investment Corporation Securities Limited.

    Most of the suspended firms were either inactive or struggling to cope with the hangovers of the capital market recession, during which margin loans and unsuccessful trades eroded the capital base of the firms.