Access Bank,Unity Bank Plc are among the 384 operators that beat the deadline for the recapitalization requirement in the Nigerian Capital Market which expired on the September 29, 2015. These operators have complied with the new minimum capital market requirement as prescribed by the Securities and Exchange Commission (SEC).
Among those that made the list, are eight suspended market operators who also met the new capitalization requirement.
Data obtained from SEC’s website showed that eight suspended operators – Afribank Securities, BGL Capital, Falcon Securities, First Integrated Capital, International Standard Securities, Kingsway Securities, Maven Asset Management and Slamad Securities – are part of the recapitalised operators.
Also as indicated on the website, 384 market operators had met the new minimum requirement by September 29, 2015, with 36 others processing reclassification of their functions and another 12 processing mergers. This means 432 operators are expected to survive the exercise.
The Commission could not give an exact figure for the number of operators in the market but promised that the list of operators that fully compiled with the deadline woul be on the website from October 2, 2015.
Preliminary review by SEC indicated that a majority of operators have complied with the new minimum capital requirements for their functions. Average compliance level ranged from 70 per cent to 95 per cent across the functions.
Capital market operators said it was expected that up to 200 of the firms would meet the deadline, adding that such figures represent a significant level of compliance and showed that stockbroking firms had shown a desire to move the market forward.
“We think that what has happened is that people have really looked at the future of the market even though things are difficult now. It just indicates that there is a lot of hope and operators have decided to dig deep and either raise capital or reclassify so that they can operate at the level which their capital can carry,” they said.
Commenting on the recapitalisation recently, managing director, Capital Bancorp Plc, Mr Aigboje Higo, explained that the recapitalisation of capital market operators was a good thing for the market.
“It is a development that would enhance investor value. It would not lead to oligopolistic market. It is likely that between 120 and 150 stockbroking firms, out of the over 200 stockbroking firms, may meet the recapitalisation deadline.”
SEC had extended the deadline for new minimum capital requirements for operators from December 2014 to September 30, 2015 in response to calls by operators for an extension.