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NSE revokes licences of 38 stockbroking firms [Full list attached]

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A total 38 stockbroking companies in the nation’s capital market have been expelled by the Nigerian Stock Exchange (NSE) over their acute level of inactivity, irredeemably weak operating status and infractions against the extant rules at the exchange.

It was gathered that the operating licences of the affected firms have been revoked by the NSE and would no longer be eligible to function in the Nigerian capital market. The companies were booted out after an exhaustive review process by the management and the final expulsion order issued by the National Council of the Exchange, its highest administrative organ.

With the revocation of their licences and expulsion, the firms shall not be able to trade on the Nigerian stock market and other international markets that Nigeria has Memorandum of Understanding (MoU) with. Nigerian capital market 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 dealing firms will be required to move their accounts to other functional stockbroking firms.

Also, directors, executives, top management and other employees of the expelled firms will not be able to secure any employment in the capital market without prior clearance and written consent of the Exchange.

“Dealing members are strongly advised not to engage in any activity with the above mentioned firms,” the Exchange stated in the expulsion circular signed by Olufemi Shobanjo, Head of Broker Dealer Regulation Department at the NSE.

Under Rule 6.12 of the Rulebook of the Exchange, 2015, members of the Exchange are disallowed from employing any of directors, authorised clerks or other persons including principal officers such as the chief executive officer, chief finance officer, chief compliance officer and chief risk officer, who have been indicted by the Exchange or the Commission without prior regulatory approval.

Also, the rule disallows other stockbroking firms from employing any person who was an officer or employee of a stockbroking firm or dealing member expelled from the Exchange; any person expelled, as an authorised clerk or its equivalent, from any other exchange; any person refused admission as a member of the Chartered Institute of Stockbrokers or any person expelled from its membership; any person expelled as a member of any professional association or institute and any person who is insolvent or has been convicted of theft, fraud, forgery, or any other crime involving dishonesty.

The expelled dealing firms included Mercov Securities Limited; Resano Securities Limited; Transafrica Financial Services Limited; Andruche Investments Plc; Angela Eccles Limited; Associated Trust Investment & Finance Limited; Beaver Securities Limited; Betraco Securities Limited; Cobal Ventures Limited; Corporate Focus Securities Limited; Financial Intermediaries Limited; GF Securities Limited; IB Finance Limited; Integrated Securities Ltd; Integrated Ventures Nigeria Limited; Intercommerce and Consultant Limited; Investment & Capital Development Company Limited and Investment Trust Company Limited.

Others included Kamrash Securities Limited; Lakeside Asset Management Limited; M & F Investment & Securities Limited; Milestone Investment Services Limited; Millennium Investment Trust Limited; Moji Securities & Investment Nigeria Limited; Morgan Trust Asset Management Plc; Multibank International Securities Limited; Nationwide Finance and International Securities Limited and Novelty Investment Limited.

Banking Code

Also expelled were Optimus Finance and Securities Limited; Pabod Finance & Investment Company Limited; Pabofin Securities Limited; Path Securities & Investment Ltd; Shiroro Finance Ltd; Tassel Finance & Investment Company; Unique Securities & Finance Services Limited; Upper Credit Securities and Investments Limited; Wellsfargo Capital Limited and Westland Investment Ltd.

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