In a bid to recommence Margin Lending, the Securities and Exchange Commission (SEC) has announced that it is set to revise the rules on margin lending. SEC Acting Director General, Mary Uduk made the announcement during the first quarter post-Capital Market Committee (CMC) in Lagos.
According to Uduk, SEC in collaboration with the Central Bank of Nigeria (CBN) is reviewing the rules to also include banking shares in the margin list. Since the market meltdown of 2008/2009 which led to several losses by investors, there have been no activities of margin loans. Despite the creation of the rules on margin lending in 2010.
The SEC DG explained that on completion of the margin rule amendment, the commission will keenly monitor compliance of the rules so as to avoid abuse in the market. She further disclosed that the E-IPO has been developed with a view to improving issuance processes as well as investor participation.
