To weed out unscrupulous and poorly capitalised stockbrokers, the (NSE) has expelled 67 stockbrokers from the stock market. This regulatory action was the final phase of delisting of the stockbroking firms, after their dealing licenses were revoked by the Exchange.
The Nation reported that the latest expulsion brought the number of stockbroking firms that have so far this year been expelled from Exchange to 88 stockbroking firms. In April, 21 stockbroking firms were expelled 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.
Click for the complete list of stockbrokers expelled by the Nigerian Stock Exchange.
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