The Securities and Exchange Commission (SEC) has officially announced an increase in minimum capital requirements for all categories of capital market operators (CMOs).
The SEC, in a circular in Friday, said the upward review was
informed by the need to strengthen market resilience, enhance investor
protection.
Under the new policy, the capital base for tier 2 “issuing
houses with underwriting” is now N7 billion — up from N200 million, while that
of trustees was increased to N2 billion from N300 million.
According to the SEC, the revised minimum capital framework
also seeks to align capital requirements with the scope, complexity, and risk
exposure of regulated activities.
Other objectives of the exercise include promoting market
stability and systemic risk mitigation, and supporting innovation and orderly
development of new market segments, including digital assets and commodities
markets.
“This circular applies to all entities regulated by the
commission, including but not limited to core and non-core capital market
operators; market infrastructure institutions; capital market consultants;
financial technology (FinTech) operators; virtual Asset Service Providers
(VASPs); and commodity market intermediaries,” the commission said.
The SEC said all affected entities are required to comply
with the revised minimum capital requirements on or before 30 June 2027.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com