Operators say extension will douse uncertainties 'As SEC approves UBA's rights issueThe Securities and Exchange Commission (SEC) has succumbed to brokers' pressure and extended the deadline for minimum requirement for all capital market operators to Sept. 30, 2015.The News Agency of Nigeria (NAN) reports that the commission has been battling with the Chartered Institute of Stockbrokers and the Association of Stockbrokers Houses of Nigeria (ASHON) over the extension.The extension is contained in a statement pasted at the commission's web site.It stated that the approval was given on Dec. 22 at the commission's board meeting following a review of the status report on the level of compliance by capital market operators.'The board expressed satisfaction with the efforts made by all operators, particularly those who have complied with the new requirements.'The board, however, took cognisance of the effect of the global economic situation and approved an extension of the deadline for compliance with the new minimum capital requirements by nine months, to 30th September 2015, ' the statement stated.The commission also commended 'the commitment of all stakeholders to building a world class capital market that enables Nigeria to realise its aspiration of a prosperous and peaceful nation'.The extension came on the heels of the plea by some capital market operators due to the ongoing uncertainties in the country that hampered market growth and development. The apex capital market regulator increased minimum capital base for broker/dealer by 329 per cent from the existing N70 million to N300 million.Broker, which currently operates with capital base of N40 million, will now be required to have N200 million, representing an increase of 400 per cent.Reacting, the Association of Stockbroking Houses of Nigeria (ASHON), on Tuesday, said that extension of the recapitalisation for capital market operators would reduce uncertainties in the nation's bourse.Meanwhile, Securities and Exchange Commission (SEC), on Monday, approved the proposed rights issue of N13 billion for existing shareholders of UBA Plc.Mr Obi Adindu, Communications Adviser to SEC Director-General, who confirmed the approval in a telephone interview with the News Agency of Nigeria (NAN), in Lagos, said the rights issue opened on Dec. 29.Adindu said the commission also approved UBA's application for a bond issue that would commence at a later date.He said that the approval was granted because the bank satisfied all regulatory processes.A breakdown of the rights issue showed that it would be one new share for every 10 shares held by existing shareholders at N4 per share.The bank had, in October, announced plans to raise Tier 1 Capital by way of a rights issue to boost its diversification strategies across Africa.In a public announcement signed by the bank's Secretary, Mr Bili Odum, the bank said it had the approval of shareholders and board resolutions to raise additional capital by various means.Mr Emeka Madubuike, ASHON President, told the News Agency of Nigeria (NAN), in Lagos, that the association would work with SEC and the Nigerian Stock Exchange to ensure market growth and development.Madubuike said that the recapitalisation extension had reinvigorated the association in assisting the market regulators to position the market as the engine room for economic growth and development.'Without the development of the market, the economy cannot grow,' he said.
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