NSE: Three Stoke Brokers Lose Licences

• NSE: Three Stoke Brokers Lose Licences

The Nigerian Stock Exchange (NSE) has revoked licences of three stockbroking firms.

The three companies are no longer allowed to deal with trading of equities in the country.

Mr Olufemi Shobanjo, the Head of Broker Dealer Regulation at the NSE, listed the companies as Mercov Securities Limited, Resano Securities Limited and Transafrica Financial Services Limited.

In a circular obtained by Investors King, the NSE regulator stated that the three listed firms failed to “comply with the requirements of the Minimum Operation Standards of The Exchange.”

Therefore, the National Council of the Exchange on January 31, 2019, approved the “expulsion and revocation” of the licences of the dealing member companies.

The NSE “strongly advised” investors in the capital market “not to engage in any activity with” the three affected stockbroking companies.

“Furthermore, dealing Members are also reminded of the provisions of Rule 6.12 (a) (3): Specific Actions Requiring Prior Consent of The Exchange, Rulebook of The Exchange, 2015 (Dealing Members’ Rules) which states that ‘a Dealing Member shall not be allowed to do any of the following without the prior written consent of The Exchange: Employ any of the following: Directors, Authorized 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.

“Any person who was an officer or employee of a Dealing Member expelled from The Exchange; Any person expelled, as an Authorized 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.”