The Security and Exchange Commission issued a press release on Monday that its board had approved the extension of the deadline for the new minimum capital requirements for Capital Market Operators (CMO) from December 31st 2014 to September 30th 2015. SEC in explaining why it approved the extension said it took ‘cognizance of the effect of the “global economic situation” in the country in taking this decision.
The commission had in 2013 December set a date of December 31 2014 as deadline for CMO’s to increase share capital. However, CMO’s had kicked against the deadline date complaining that the new CMO minimum capital requirements were unfairly imposed and did not consider other factors unique to the industry. SEC retorted that it wasn’t going to back down insisting that the new capital requirements was long overdue already.
It is therefore surprising that SEC would cave in and announce an extension just two days towards the prior deadline. Also in sighting the “global economic situation” for its reasons, it did not explain what those economic situations are and how it affects CMO’s. What about the 262 CMOs that have already complied with the deadline? Will they see this latest move as fair on them?
These sounds more like intense lobbying by the CMO’s who failed to meet the deadlines. For retail investors out there, we only but continue to hope for a more assertive SEC that has our best interest at heart.