Capital Market

On the 19th of December 2013, the Nigerian Securities and Exchange Commission [SEC] approved a new capital requirements threshold for market operators.  Under the new regime, capital requirement are as follows:

Brokers – increased from N40million to N100million
Issuing Houses – increased from  N150million to N200million
Underwriters – increased from N100million to N200million
Registrars – increased from N50million to N150million
Trustees – increased from N40million to N300million
Rating Agency – increased from N20million to N150million
Individual Investment – increased from N500,000 to N2million
Fund Adviser/Portfolio Manager – increased from N20million to N150million.

The Capital requirement for a Corporate Investment Adviser remains unchanged at N5million.  It is widely believed by the new Capital requirements will lead to operators being more focused and also reflect the increasing volume of business.  It is also hoped that the new regime will herald a wave of mergers and acquisitions amongst existing firms.

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