Available statistics from the Securities and Exchange Commission (SEC) indicates that nine stockbroking firms in the nation’s capital market have consolidated their operations through mergers.
According to SEC, the firms which received regulatory and court sanction approvals are Woodland Capital Plc, Covenant Securities & Asset Management Ltd, and Cradle Trust Finance & Securities Ltd.
The other includes First Stockbrokers Ltd, Summa Guaranty & Trust Company Ltd, Signet Investment & Securities Ltd, Vision Trust & Investment Ltd, Securities and Capital Management Company Ltd.
A further analysis of the merger showed that Woodland Capital, Covenant Securities and Asset Management Ltd and Securities and Capital management merged their operations under a new company referred to as Woodland Capital Plc.
First Stockbrokers Ltd and Summa Guaranty& Trust Company Ltd consolidated operations as First Summa Capital Management Ltd while Signet Investment & Securities Ltd acquired Vision Trust & Investment Ltd.
Another two capital market operators, Securities & Capital Management Company Ltd and Strand Capital Partners Ltd received regulatory nods to merge and form Constellation Capital Ltd.
Meanwhile, only 963 capital market operators have so far scaled the recapitalization hurdle of SEC that ended on September 30, 2015.
The capital market operators include brokers, broker/dealers, receiving bankers, corporate investment advisers, registrars, fund managers, issuing houses, rating agencies, reporting accountants, corporate sub-brokers and Trustees.
Others include solicitors, portfolio managers, custodians, venture capital managers, underwriters securities lending agents, private equity fund managers and over the counter (OTC) dealers among others.
SEC, the nation’s capital market regulator had earlier increased the minimum capital base for brokers/dealers by 329 per cent to N300 million from N70 million.
Brokers capital base also rose to N200 million or 400 per cent increase from N40 million while the minimum capital base for dealers increased by 233 per cent N100 million from N30 million.
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