The Nigerian Stock Exchange (NSE) has expelled 67 stockbrokers from the stock market.
This regulatory action is aimed at weeding out unscrupulous and poorly capitalised stockbrokers.
A regulatory report obtained at the weekend indicated that the expulsion was the final phase of delisting of the stockbroking firms, after their dealing licenses were revoked by the Exchange.
A source at the Exchange said the expulsion followed recommendation of the Disciplinary Committee of the Council of the Exchange and the final approval of the National Council of the Exchange.
The latest expulsion brought the number of stockbroking firms that have so far this year been expelled from Exchange to 88 stockbroking firms.
The Nation last April reported the expulsion of 21 stockbroking firms for infractions ranging from poor capitalisation to unauthorised sales of investors’shares.
With revocation of dealing licences and expulsion from the Exchange, the 67 stockbrokers will not be able to trade at the Exchange or function in any capacity as a stockbroking agent within the Nigerian capital market. Besides, all former top officials of the firms would have to go through special screening and approval before they could be employed by any other capital market operator.
The expulsion also implies that the expelled firms will not be able to act as stockbroking agent in other countries that have Memorandum of Understanding (MoU) with capital market authorities.
The authorities have standing bilateral agreements with several other jurisdictions, including Morocco, Angola, China, Ghana, Kenya, Malaysia, Mauritius, South Africa, Tanzania and Uganda.
With the expulsion, investors who have their investment accounts with the expelled stockbrokers will be required to move their accounts to other functional stockbroking firms.