NSE To Revoke Licenses Of Inactive Brokers After Six Months




The Nigerian Stock Exchange (NSE) is to revoke license of any dealing member that is not active for six months. This is part of the new amendments the NSE is making to its rules. While there are some stockbroking firms, which have not been active for years, their licenses have remained with them.

According to the amendment, under no circumstances shall a dealing member cease to carry out its day to day business activities for which it was licensed to operate without any reasonable cause.

“Where a dealing member is inactive for a period of six consecutive months, the Exchange shall revoke the license of the dealing member,” the NSE said.

The exchange explained that a dealing member shall be considered inactive if the firm has not recorded any trading activity without being suspended by the exchange or the Securities and Exchange Commission (SEC), which is voluntary.

“If the   member firm has been voluntarily inactive for the stipulated period its dealing licence shall be revoked forthwith,” the NSE said.

On the other hand, a dealing member may be inactive involuntarily. This occurs where the firm has been suspended by  the NSE or SEC for any  infraction.

“Where a firm has been involuntarily inactive for the stipulated period the NSE shall exercise its discretion in determining whether to revoke the firm’s dealing licence. Where the NSE revokes a dealing member’s license, the NSE shall immediately commence the process of expelling such dealing member,” the exchange said.

Besides, the NSE said   where a dealing member is suspended by SEC,  it would immediately suspend  the dealing member as soon as it get the notification from  the commission.

Where a dealing member’s registration is revoked by the commission, as soon as the NSE is notified, it shall immediately commence the process of expulsion of the dealing member.

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