By InvestAdvocate

Lagos (INVESTADVOCATE)- The Securities and Exchange Commission (SEC) has issued a July 31, 2015 deadline to Capital Market Operators (CMOs) seeking mergers, acquisitions or any other form of business combination.

The Commission also directed all CMOs proposing reclassification (e.g. broker/dealer to sub-broker) or seeking to reduce their registered functions, in view of the new minimum capital requirement, to notify it not later than July 31, 2015.

The directive, according to SEC is part of the compliance and enforcement process towards the September 31 deadline for the new minimum capital requirements for CMOs, which was initially billed to commence January 1, 2015

SEC in 2013 announced increases in minimum capital requirements for CMOs, it said minimum capital requirement for brokers and dealers was increased from N70 million to N300 million a 329 percent increase.

Brokers currently operating with capital base of N40 million, will now be required to have N200 million, representing an increase of 400 percent. While, the minimum capital base for the dealers was increased to N100 million from N30 million indicating an increase of 233 percent.

Similarly, issuing houses are required to have a N200 million capital base compared to the current capital base of N150 million. The capital requirement for underwriters climbed up from N100 million to N200 million.