- The Securities and Exchange Commission on Wednesday said the Capital Market Committee was working to reduce the settlement cycle for transactions in the capital market and on other initiatives that would speed up the development of the market.
- The Acting Director-General, SEC, Mr. Mounir Gwarzo, said this while briefing journalists about the deliberations at the first quarterly meeting of the CMC for 2015, which was held in Lagos.
- Specifically, he said the CMC was working to reduce the settlement cycle from the current “T+3” to “T+2” or “T+1”. Under the “T+3”, transactions carried out in the capital market is expected to be settled three days after the trade date.
- This means when you buy or sell shares it actually takes three days for your account to be debited or credited respectively
- Reducing the cycle means that transactions will be settled faster.
- As part of efforts to attract more domestic investment in the market, Gwarzo said the CMC, which comprises stakeholders in the capital market, was working to ensure that funds from transactions would be credited directly into the investor’s accounts, rather than through the stockbrokers
- Source: Punch
SEC plans to reduce settlement cycle from T+3 to T+1
