Citing capital base of stockbroking firms and other capital markets operators in other countries, which are not as high as what would be applicable in the country post capitalisation on December 31 2008, the Senate Committee on capital market has reiterated its commitment to stop the recapitalisation exercise.

Though operators are jostling to meet the deadline by mergers and acquisitions, private placements among other means, the Chairman, Senate Committee on Capital Market, Senator Ganiyu Olarenwaju Solomon, said the operators should not be forced to recapitalise by fiat, without recourse to the National Assembly.
Solomon who addressed journalists in Lagos at the weekend said: "We are not in a military regime. We cannot allow SEC to give rules on capitalisation like that."

In other developed countries, the capital base of stockbroking firms and other operators are not that high because they only render service to investors. So what is going on here?"

The committee, had in a letter dated March 12, 2008, addressed to SEC, pointed out that the commission had no right to bar registrars from handling the registers of their parent companies.
It also alleged non-compliance of the commission with due process in respect of recapitalisation of the capital market operators.

The letter said: "While we appreciate the commission drive and initiative to sanitise the market and create an effective level-playing ground, we wish to make it clear that the committee has not been adequately briefs in respect of these directives by neither you, nor the Ministry of Finance."

The letter titled 'Registrar Transfer and Recapitalisation' continued: "We are of the opinion and firm believe that rather than read about the policies of the commission and subsequent reactions that trail them on the electronics and print media, the committee, as the representatives of the people should have been carried along through proper briefings.

"In view of the foregoing, the policies should be kept in abeyance pending proper briefing with the committee outlining the positions and what adverse effect or otherwise they would have on operation of the market as well as the structures put in place to accommodate likely changes.

"This has become necessary to avert sending wrong signals that would jeopardise the growth and stability of the market or erode investors' confidence."