The Securities and Exchange Commission has fixed 5:00pm on the first business day after a transaction (T+1) as the settlement deadline for equities and commodities traded and settled through the Central Securities Clearing System.
The Commission made this clarification in a circular issued on Wednesday to capital market operators and other market participants as part of the implementation of the T+1 settlement cycle in the Nigerian capital market.
According to the SEC, all transactions in the affected securities must be fully paid for by 5:00 p.m. T+1 to ensure compliance with the standard Delivery versus Payment settlement procedure.
It warned that where a broker/dealer’s trading account is not adequately funded to meet its settlement obligation within the prescribed period, the default would be managed in line with the CSCS Default Management Procedure and the applicable transaction settlement guidelines of the relevant exchange.
The Commission also clarified that foreign portfolio investors are not required to prefund their accounts for trades in the Nigerian capital market.
