This means that market operators have until the end of March to comply with the minimum capital requirement.
The decision according to the apex capital market regulator, followed a plea by stockbrokers to for additional time so as to fully increase their capital base.
The new Executive Committee, Association of Stockbroking Houses of Nigeria (ASHON), led by its Chairman, Patrick Ezeagu, during a courtesy call to the Commission last week, had solicited for the grace period for the recapitalisation to be extended by six months.
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But the Director General, SEC, Mounir Gwarzo, granted the Association’s request by extending the recapitalisation exercise by three months, arguing that stockbrokers carry equities in their balance sheet and prices of equities have dropped thus affecting their capital.
The commission had in August last year extended the recapitalization deadline to December 31, 2016, warning operators who fail to meet the deadline of sanction and revoke of licence.
The continued extension of the deadline is an indication of the illiquidity in the market triggered by economic recession and a bad case of inflation. But a full compliance with the capital market requirements would develop robust controls, boost governance framework and effective human capital.