Lagos - The Securities and Exchange Commission (SEC) has said it would not succumb to stockbrokers’ blackmail on the new capital requirements for capital market operators.
An authoritative source in SEC, who pleaded anonymity, said there was “no going back on the re-capitalisation”.
He said that the commission would not compromise its stance on the market standard because of the opposition of some stockbrokers to the re-capitalisation programme.
According to him, the market does not need many dealers with negative shareholders’ fund in the market.
The SEC source stressed that the commission would not compromise the market standard because of some brokers’ opposition and blackmail.
The source also said that the commission would not be part of the proposed “capital segmentation” being clamoured by the some dealers.
He said that the brokers should be more concerned on ways to raise the new capital instead of seeking for a meeting with the commission's board.
SEC on December19, issued new capital requirement for capital market operators with December 31, 2014 as deadline for operators to re-capitalise.
A breakdown of the new capital requirement showed that a broker/dealer now requires a minimum capital N300 million, an increase of 328.57 per cent over the initial capital of N70 million.
A broker is now required to increase his capital to N200 million from N40 million, while a dealer’s minimum capital now stands at N100 million against the old N30 million.
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