SEC bans unregistered CMOs from operations May 31

The Securities and Exchange Commission (SEC) says it will stop operations of the Capital Market Operators (CMOs) yet to renew their registration on May 31.

The commission disclosed this in a circular signed by the management on Monday in Abuja.

The commission said that the CMOs yet to renew their registration at the expiration of late filing on May 31, would not be eligible to operate in the capital market.

Consequently, the commission said that late filing for renewal of registration would only be entertained from May 1 to May 31.

It said that the CMOs were required to have completed the renewal process on or before April 30.

The commission noted that names of the CMOs that had renewed their registration would be published on SEC’s website and national dailies.

It added that the names of eligible CMOs would be communicated to the relevant Securities Exchanges and Trade Associations.

Our correspondent reports that SEC had in March, issued a circular to the general public and the CMOs for the reintroduction of the periodic renewal of registration by operators.

The commission noted that the reintroduction of the registration renewal was due to the need to have a reliable data bank of all the CMOs registered and active in the country’s capital market.

The registration renewal was also to increasingly reduce incidences of unethical practices by the CMOs such as may affect investors’ confidence and to strengthen supervision and monitoring by the commission.