By Peter Egwuatu & Nkiruka Nnorom
STOCKBROKING firms under the aegis of Association of Stockbroking Houses of Nigeria, ASHON, have appealed to the Securities and Exchange Commission, SEC, to extend the grace period for recapitalization by another three months.

SEC had, last month, sanctioned some stockbroking firms who were unable to meet its deadline for recapitalisation having given them three months grace period to comply with the new minimum capital base requirement and the Minimum Operating Standards, MOS.

The stockbrokers, through their association are now asking for six months period of grace to comply. While receiving the new executives of ASHON on a courtesy visit to him in Abuja, the Director General of the Commission, Mounir Gwarzo, agreed with the stockbrokers that they carry equities in their balance sheet and prices of equities have gone down thus affecting their capital, hence the extension by three months. He, however, refused to make any commitment on the extension they requested.

He also restated the Commission’s resolve to promote the development of commodity exchanges in the country, saying that SEC was willing to support the Lagos Commodities & Futures Exchange being midwifed by ASHON.

In their presentations ASHON had noted with concern the proposed amendment of Rule 56(1) – Function of Brokers (Harmonization of Registration requirement for incidental functions). The development will preclude brokers from providing investment advice to their clients/public.

ASHON, while saying that it does not understand the rationale behind the proposed amendment, solicited for the reconsideration of the proposal.