Nigeria’s Securities and Exchange Commission, SEC, has fixed 5:00 pm on the first business day after trading as the settlement deadline for eligible equities and commodities.
SEC disclosed this in a circular on Wednesday to all capital market operators in Nigeria.
The Commission explained that the measure formed part of the implementation of the T+1 settlement cycle in Nigeria’s capital market, which began on June 1, 2016.
Under the T+1 framework, eligible securities transactions are settled one business day after the trade date to shorten the settlement period.
“Accordingly, all transactions in the affected securities must be fully paid by 5:00 p.m. T+1,” the Commission stated.
SEC warned that any broker or dealer whose trading account lacked sufficient funds to meet settlement obligations would face default procedures and would be treated in line with its Central Securities Clearing System, CSCS, Default Management Procedure.