Lagos — The Nigerian Stock Exchange (NSE) has suspended 39 dealing member firms for operating without compliance officers as of September 9, 2013.
According to the NSE Broker Trax, the affected firms are, 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 on the list are, 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 Financing Limited.
Others are, 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, Wema Asset Management Limited, WT Securities Limited, Zuma Securities Limited and Bauchi Investment Corp. Sec Limited.
Daily Trust can reveal that most of the suspended dealing member firms have not been active in the market.
The NSE had said that from April 01, 2011, all dealing members must have all their correspondence signed by the chief compliance officer and/or the managing director/chief executive officer of the firm.
Consequently, it directed 29 dealing member firms to submit their monthly transaction reports for the period ended July 31, 2013 to the exchange.
The exchange gave the directive in a circular with reference number BDR/CIR/01/MSI/09/13 signed by Head, Broker Dealer Regulation of the NSE, Olufemi Shobanjo that the brokers must tender their transaction report on or before the close of business September 13, 2013.
According to the circular, the affected firms are Adamawa Securities Limited, Allbond Investment Limited, Belfry Investment and Securities Limited, CDL Capital Markets Limited, Crane Securities Limited, Deep Trust and Investment Limited, Fittco Securities Limited, Funds Matrix and Assets Mgt Ltd, Gombe Securities Limited, Investment Centre Limited, Kundila Finance Services Limited, Lakesworth Investment and Securities Limited, Lighthouse Asset Management Limited, Mact Securities Limited, Maxifund Investment and Securities Plc, PIPC Securities Limited, Profund Securities Limited, PSI Securities Limited, Rainbow Securities Limited, Regency Asset Management Limited, Security Swaps Limited
Others are, Spring Trust and Securities Limited, Support Services Limited, Transafrica Financial Services Limited, Transworld Investment Limited, UIDC Securities Limited, Waila Securities and Funds Limited, WizeTrade Capital and Asset Mgt Ltd and Woodland Capital Markets Plc.
Meanwhile, the NSE said it will fine dealing member firms that are yet to register their compliance officers N500,000.
The exchange said this is in line with Article 15(a) and (c) of the Rules and Regulations governing dealing members who are required to provide the exchange with the following details of your compliance officer(s): name, date of appointment, Securities and Exchange (SEC) registration status, the circular said, adding that failure to have a compliance officer attracts a penalty of N500, 000 pursuant to the NSE policy 01.