By 
The Securities and Exchange Commission (SEC) has issued a stern warning to capital market operators (CMOs) to renew their registration for 2025 by January 31 or face stringent penalties, including exclusion from market activities.
In a circular released on Sunday, SEC reminded CMOs to begin the annual renewal process from January 1 to January 31, 2025.
“All CMOs applying for renewal must include their 2025 annual subscription receipt from their respective trade groups as part of their application,” the circular stated.
Mandatory Renewal Through Electronic Portal
SEC emphasized that the registration renewal must be completed exclusively via its electronic portal. CMOs that fail to comply will face penalties and be barred from participating in market activities.
Rationale Behind Periodic Registration Renewal
The Commission reintroduced periodic registration renewal in 2021 as a strategy to maintain an accurate database of active operators and curb unethical practices within the Nigerian capital market.
According to SEC, the renewal process aims to:
- Provide up-to-date information on market operators for local and foreign investors, regulatory agencies, and the public.
- Boost investor confidence by minimizing unethical practices.
- Strengthen market integrity through enhanced supervision and monitoring.
“The renewal process is essential to improving oversight and ensuring that the Nigerian capital market remains a trusted environment for investors. It also seeks to reduce unethical practices that could negatively affect investor confidence increasingly,” the statement added.
Enterprise Risk Management Compliance
In addition to the registration renewal directive, SEC has mandated all CMOs to implement an enterprise risk management framework aligned with internationally recognized standards. This measure is expected to enhance risk management practices and bolster the overall stability of the capital market.
Comments