By investadvocate

Jan 27 2011 17.59 GMT

Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) Thursday January 27 2011 announced that 50 Stockbroking Firms remains on suspension on account of undercapitalisation. This was contained in a Statement by the NSE and posted on its official website.

 

The announcement reads thus: “27^th January 2011: Updated list of undercapitialised Stockbroking Firms. We have today suspended the following Stockbroking Firms for failing to meet the statutory Equity Capital requirement”.

 

This is coming on the heels of earlier suspension on Wednesday January 19 2011 of 57 Stockbroking Firms for inadequate shareholders Funds.

 

As at Tuesday January 25 2011, Nigeria’s Exchange affirmed that 10 of the suspended Stockbrokerages have met the requirement; but did not make available details of the 10.

However, it has been reported that BGL Securities Limited, the Stockbroking arm of the BGL Group, has been cleared to resume operation in the Nigerian Capital Market (NCM) as a      Dealing Member Firm.

 

In a bid to meet this statutory requirement, Stockbroking Firms are making desperate efforts to recapitalise and bounce back to business.

 

Afrinvest West Africa Limited, in its effort to recapitalise had floated a N2 billion Private Placement (PP) to enhance its shareholders’ fund.