SEC MOVES TO REVIVE MARGIN LENDING
Written by thereachfm on March 25, 2019
The Securities and Exchange Commission, SEC, has made known plans which are under-way to amend the rules on margin lending and resume activity in that space.
Speaking at the first quarter post-Capital Market Committee, (CMC) media briefing in Lagos, the Acting Director General, SEC, Mary Uduk, announced that engagement is ongoing with the Central Bank of Nigeria (CBN) on margin lending with a view to re-include banking shares in the margin list.
She said that the need to amend the rules on margin loans became necessary following zero activity in the space even after rules around margin lending was formulated in 2010.
It will be recalled that many investors that engaged in margin lending prior to the 2008/2009 capital market meltdown, recorded collosal losses following the crash and loss of value in the shares.