SEC Gives Firms July 31 As Deadline For Mergers And Acquisitions
Editor
All capital market operators planning on mergers and acquisitions or any reclassification of their functions have July 31 to do so as their deadlines. this directive is from The Securities and Exchange Commission (SEC).
The July 4 directive also applies to capital market operators seeking to downsize from stockbroker to sub-broker, broker-dealer to either broker or dealer and from multiple functions to a single function, among others.
The directive, according to a source at the Commission, is part of the compliance and enforcement process as the apex capital market regulator prepares to enforce the September 31 deadline for the new minimum capital requirements for capital market operators.
It is common knowledge that some capital market operators have been considering mergers and acquisitions to stave off liquidation.
SEC in 2013 announced major increases in minimum capital requirements for capital market functions under a new minimum capital structure that was initially scheduled to take off by January 1, 2015. It however extended the deadline to September 30, 2015.
Minimum capital base for broker and dealer was increased by 329 per cent from the existing N70 million to N300 million. The broker, which currently operates with capital base of N40 million, will now be required to have N200 million, representing an increase of 400 per cent. Minimum capital base for the dealer increased by 233 per cent from N30 million to N100 million.
