₦airaland Forum

Goddy Egene

Strong indications have emerged that the Securities and Exchange Commission (SEC) is aiming to prune the number of stockbroking firms to 50, from the current a 250 active firms.

As at December 2013, SEC registered brokers were about 281, with 250 of them being active. According to SEC, 20 per cent of the 250 controls 80 per cent of the total transactions in the market by volume and value.

Market sources told THISDAY on Monday that the thinking of the capital market regulator is to reduce the number of stockbroking firms to the number controlling 80 per cent of the market in terms of volume and value.

One of the ways SEC wants to use to reduce the number of broking firms, THISDAY gathered, is the new capital structure, which was announced last December.

According to the new minimum capital structure, a broker/dealer is required to have N300 million, compared with N70 million in the past.

SEC recently gave indication on its preference for fewer stockbroking houses when it said the relationship between the transaction volume and value on one hand and number of operators on the other, makes the Nigerian market a most parlous picture relative to other peer and non-peer markets.

The regulator said many more operators are chasing after fewer businesses in the Nigerian market. Besides, SEC alleges that because many operators are chasing after fewer businesses, the development has led to “acts of market indiscipline, rule infraction and sundry malfeasance as poorly capitalised capital market operators (CMOs) adopt untoward practices to stay afloat.”

The commission said these CMOs in this category control about 20 per cent market share and or total transactions, constitute the source of over 79 per cent of complaints about unethical conduct and rule infraction.

“The pervasive presence of undercapitalised and hollow shell CMOs therefore undermines market integrity, erodes investor confidence and hikes regulatory cost which is incurred through investor complaints management and other remedial undertaking,” the commission said.

Speaking on this development, a senior stockbroker, who speak on the condition of anonymity, said the intention of the SEC to reduce the number of brokers to 50 if true, will have negative impact of the market.

“Ïn the first place, trying to achieve this through an increase of 300 per cent in share capital of broking firms, is not the right strategy. Secondly, forcing broker out of the market or reducing the number from over 200 to 50 will mean preventing many potential investors from the market the few ones to remain will have monopolistic tendencies. And this is contrary to financial inclusion policy of the federal government,” the broker said.

The broker added that SEC should rather look at the report on the harmonised Complaint Management Framework (CMF) submitted since 2012 and see how it can address the various complaints by investors instead blaming operators.
As part of market reform efforts of the SEC, a committee was set up to develop a uniformed CMF for the market. The committee, headed by the Chairman of Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike was said to have submitted that report since 2012. But nothing has been heard about the report while investors continue to face frustration due to poor handling of their complaints.



http://www.thisdaylive.com/articles/sec-moves-to-reduce-stockbroking-firms-to-50/168272/

Goddy Egene

Strong indications have emerged that the Securities and Exchange Commission (SEC) is aiming to prune the number of stockbroking firms to 50, from the current a 250 active firms.

As at December 2013, SEC registered brokers were about 281, with 250 of them being active. According to SEC, 20 per cent of the 250 controls 80 per cent of the total transactions in the market by volume and value.

Market sources told THISDAY on Monday that the thinking of the capital market regulator is to reduce the number of stockbroking firms to the number controlling 80 per cent of the market in terms of volume and value.

One of the ways SEC wants to use to reduce the number of broking firms, THISDAY gathered, is the new capital structure, which was announced last December.

According to the new minimum capital structure, a broker/dealer is required to have N300 million, compared with N70 million in the past.

SEC recently gave indication on its preference for fewer stockbroking houses when it said the relationship between the transaction volume and value on one hand and number of operators on the other, makes the Nigerian market a most parlous picture relative to other peer and non-peer markets.

The regulator said many more operators are chasing after fewer businesses in the Nigerian market. Besides, SEC alleges that because many operators are chasing after fewer businesses, the development has led to “acts of market indiscipline, rule infraction and sundry malfeasance as poorly capitalised capital market operators (CMOs) adopt untoward practices to stay afloat.”

The commission said these CMOs in this category control about 20 per cent market share and or total transactions, constitute the source of over 79 per cent of complaints about unethical conduct and rule infraction.

“The pervasive presence of undercapitalised and hollow shell CMOs therefore undermines market integrity, erodes investor confidence and hikes regulatory cost which is incurred through investor complaints management and other remedial undertaking,” the commission said.

Speaking on this development, a senior stockbroker, who speak on the condition of anonymity, said the intention of the SEC to reduce the number of brokers to 50 if true, will have negative impact of the market.

“Ïn the first place, trying to achieve this through an increase of 300 per cent in share capital of broking firms, is not the right strategy. Secondly, forcing broker out of the market or reducing the number from over 200 to 50 will mean preventing many potential investors from the market the few ones to remain will have monopolistic tendencies. And this is contrary to financial inclusion policy of the federal government,” the broker said.

The broker added that SEC should rather look at the report on the harmonised Complaint Management Framework (CMF) submitted since 2012 and see how it can address the various complaints by investors instead blaming operators.
As part of market reform efforts of the SEC, a committee was set up to develop a uniformed CMF for the market. The committee, headed by the Chairman of Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike was said to have submitted that report since 2012. But nothing has been heard about the report while investors continue to face frustration due to poor handling of their complaints.

can you please explain the bolded

Elai147: There is a support at the N20 line. So my first re-entry price will be around N20. If it breaks this support, I will load more at the next support level and continue loading at various support points until my money finish

Oando will get to 17 Naira before any rally

fake

Dumexoga: Someone did say we should follow our hearts and I quite agree with that. If you get informations at the right time and have the heart to invest you will make maximum returns. I will always make my contributions with facts. On the 5th of November, I bought 5 million units of transcorp at 1.93k, 1.95k and 1.96 respectively, and on the 19th of November, I sold at 4.35k flat. And I made over 11million within the space of two weeks. My mind told me it will cross 5 naira that period but I had to quickly sell off just to be on the safer side. While this rally was going on, many people sat down and was criticizing, calling Tony Elumelu names and analyzing trascorps fundamentals, but others were busy making money. This market works with informations. When I heard that the federal govt. will hand over license to all power plant owners, I took advantage of that, because I know for sure that transcorp owns ughelli power plants. And I also know that people will begin to take advantage of that, and take position on the stock to make profits. Am only using this information to help some people understand what the market is all about.if you are a trader, all you need is information to make profits and exit. One love and happy sunday

Oga Dumexoga. please what is the fountain of information telling you now!what should we buy biko

ROSSIKE: World class dunce. Ever heard of Abuja?

YOUR FATHER/MOTHER/UNCLE/CHILDREN IS A DUNCE!!! E NO GO BETTER FOR YOU IN THE NEW YEAR. OLOSI. CAN YOU JUST SAY ITS ABUJA. OLOSI JATIJATI

Elai147: It depends on what perspective Omexonomy is viewing from. I am not sure it's from a long term or fundamental perspective but she may be right from technical analysis point if view.

technical analysis point if view HOW?

mercylicious: I didn't buy ubcap at 1.10 but 1.20 and 1.27. The 1st set I bought was 1.27 , wen d price hit 1.10, I placed another order but didn't put price limit and d price increased dt day to 1.20

Ubcap and afriprud always meet their forcast. Their growth rate is always over 100%. Ubcap has better valuation than afriprud but afriprud rises faster than ubcap cos of the lesser no of outstanding shares.

Vitafoam ends their year sept and results come out jan. They have a good dividend paying polcty same wit upl. It has a cycle, after taking profit for dec year end coys, sum ppl enter upl and vitafoam immediately as the are bound to rise after oct till jan/feb.

Note this may not continue as vitafoam might plans to go for right issue. This will increase their outstanding shares. If they don't make good use of the raised cash, wahala fit dey. Some ogas said they are raising cash to reduce their debt since cost of borrowing is getting so expensive.

For redstarex, I have not checked d coy.

Like I said b4, am still very young in the market, started following this market february this year and made big mistakes, but am improving. I read old posts on smn. For me to be better, I need to understand technicals, how to identify wen a stock hits support, resistance, seeing oversold or overbought b4 it forms, etc. Am still learning, atleast I can identify breakout now.

madam you be guru jor. which one be breakout. and how did you learn all you know now in such a short time, since you just started studying the market this February

WE NEED AN IJAW MAN

Omexonomy: TO WHOM IT MAY CONCERN
Whoever cares should buy unilever at N53.80 which drop from N61 and at presently it is gathering mometun to rise to N70

do you know they posted a bad result?

-12.63% YoY

Chubhie: The beauty of democracy is to have a strong opposition so as to keep the ruling party on its toes. APC as it stands is gathering momentum for 2019. Yes they will win more states in 2015 but not the centre. GEJ is the boss for 2015.

This should be their target honestly. to win more states govs, senate seats and HORs, They cant take the centre for now

Konmight: PDP is unfortunate sha, why is it difficult for them to field acceptable candidates instead of Omisheka and Koyose. I'll defeat Omisore and Fayose in a guber poll, YES I'm sure. Omisore is a bad news in Osun State. It's a lost battle already. If Ife must produce the next governor, why can't they field Prof or someone credible? Why Omisore? O ma se ooo
They've lost before the election. AregbeRascal till 2018.

Gbam!!!!!!!!

Aregbe ooooooooooooooo Aregbe for life!!!!!!!!!

ckkris: The voters will decide, not ipad e-warriors that don't have voter's card.

you can guess the mood. im sure of osun. nobody can defeat APC. just as nobody can defeat GEJ in SS/SE regions for sure

hooged: @OP PICTURE OF THE LEBANESE BOSS PLS

does your babalawo need his picture?

ochejoseph: 1. Its a congregation of strange Bed Fellows.
Imagine Ribadu/Amechi/Tinubu /Buhari /kwankwaso/yerima /Rochas

2. It has No Ideology . All you need to do to be baptised into this party is simple , just criticise the president an ''Chazm '' you are born again !

3. The APC acronyn is stolen .
By the time the court finally Delivers its judgement on the true ownership of the APC acronym , INEC will have no choice but to give the name to its rightful owners leaving the merging parties whose certificates have been withdrawn in the cold

4.TINUBU CANNOT COPE WITH THE PDP EXCESS LUGAGGE

With Kwankwaso screaming the nPDP has the highest No of Gov's these early ,it will not be long before he starts making demands Which will starts tearing the party to pieces .

5 CRISIS
Bafarawa says Wamakko will only be a member , Shekarau insist he is the leader of the party and Kwankwaso is a stranger . Marwa prefers to destroy the APC than Have Nyako as its Leader , Belgore has told Saraki to look for another structure, Amechi has completely lost out !
They won't survive this !

6 LACK OF HUMAN FACE

APC leaders lack human face ,it won't be long before Nigerians realise the with the APC govt at the center we might be forced to Pay tax before we sleep in our homes or Go and DIE!
With the construction of roads at 1 billion per KM. Nigerians already know better .

7 DO AS I SAY NOT AS I DO
They preach transparency but they won't tell us how much IGR they generate, this hypocrisy will also consume them in the lead up to 2015

To be continued

so how does it profit the common Nigerian if APC collapses and Nigeria goes one Party state? Anyway I can list 20 reasons why PDP will scatter after 2015

twosquare: Actually, I don't know that of Osun but Ekiti either belong to Labour party or PDP....sorry APC is out here.....Ekiti people don't follow majority... that the whole of S.W is now under APC doesn't mean it will be next election.... expect for some outstanding governors.

nobody can defeat Aregbe in Osun

taharqa: Reali? And that's why in d only Election held in a SW State since 2011 in Ondo, PDP came a close 2nd to Labour Party, whilst APC, that according to you 'd people of d SW hv chosen' came a distant 3rd ('Okpoo').... Keep Deceiving yrself, and Watch..

I like your reply. Make APGA com contest and win in Osun na Same way they won in Anambra. onyi oshi

scipher: https://farm5.static.flickr.com/4152/5220890047_1377283a07_b.jpg

this is not Nigeria Jor

watch these stocks uba zenith ubcap Afriprud fcmb skye and Oando still!

Madam mercy. This your parapo na wa o. I thought you don port go MorganCapital. But the Anambra blood no go allow u leave Fidelity bank and associates. FSL Anyway Na God Save me from UNiTY Tsunami. But I go still put head for Skye, Nem. I pray against Nem(esis). Oando still Loading FCMB UBCAP plus Zenith. Infact someone told me to use wheel barrow park AIICO say E fit give 25-40% by Feb Ending.
Ogas. Make I load Aiico?

BelloSKK: Please, may I have your phone number and email, I would like to be getting some pieces of advice from you as regards stock to buy/ sell.
Thanks very much.

you dont expect people to give their number out randomly. if you need advise, just ask here and you will get opinion. Thats all

what's the difference between share cancellation and reconstruction

Goddex: [size=16pt]Joe Igbokwe can keep bragging. In politics bragging is allowed but the last I checked . . .

1) PDP still controls 18 states while APC 16

2) The LP state of Ondo and APGA Anambra are in an informal alliance with
PDP and will likely work for the PDP

3) Accord party too is in working alliance with PDP

4) I can bet, the Senate will never go the way of APC but I know they may succeed in widening it's slim lead in the House of Reps

5) In summary, PDP still remains the party to beat
[/size]

LETS SEE IF YOU CAN STILL SAY 1 AND 4 IN 6MONTHS TIME

mercylicious: Wat a great entry by jackbauer. Lol. Same way I entered smn.
I still be learner.
Stockbull, abeg enter d place. We don dey miss u.

MADAM HOW FAR WITH RATINGS OF THE STOCKS ABOVE AND LISTING THEM IN ORDER OF PREFERENCE

[size=16pt]This is my open letter to you, Mercy![/size]

Dear madam mercylicious,
I have noticed that you have a great love for money and that you are a trader. Let me put it put it to you that i received 2 pints of your blood in a recent blood transfusion i had.
After noticing my new behavior, My doctor advised i get a total blood exchange to expunge your "bad blood" but i refused. Therefore your blood is flowing in my veins
I used to be like KOD with an investment horizon of 80yrs and above but now, i love money and i am turning to be a trader.
i noticed that you spoke like a novice but by the power conferred on me i hereby declare you a GURU
so therefore you must advise on the following stocks and order them in preference:
FCMB
NEM
SKYE
UBCAP
ZENITH
OANDO
GTBANK
UBA
PRESTIGE
UNITYBANK

Yours Faithfully
Jark P Bauer
CTU Director

kindly provide your twitter handle

timimoyegun: No No No

so can you explain what bigass said in her post
how can they be so sure

bigass: Was it actually possible to alter visa lottery draw result?

I know nigerians are not eligible to play anymore. But I heard something that I just want to confirm. I heard that people runs visa lottery and alter the result.
I heard of this family of 3. All the children won visa lottery each during his/her NYSC. An they were all sure they were going to win
Was it actually possible to runs the result?