Nigeria releases guidelines on sec lending
26 June 2012 Nigeria
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The Central Bank of Nigeria (CBN) has released guidelines on foreign participation in securities lending.
A letter from the bank addressed to all authorised dealers, custodians, stockbrokers and general public, detailed the processes for issuance of Certificate of Importation (CCI) for securities lending transactions.
The bank directed all authorised dealers to ensure strict compliance with the provisions of the circular.
“The foreign borrower shall be issued a CCI upon importation of capital for the purchase of collateral securities. The foreign borrower reserves the discretion to keep the cash collateral in Nigeria in foreign currency. In this situation, no CCI shall be issued for the collateral,” the bank stated.
A letter from the bank addressed to all authorised dealers, custodians, stockbrokers and general public, detailed the processes for issuance of Certificate of Importation (CCI) for securities lending transactions.
The bank directed all authorised dealers to ensure strict compliance with the provisions of the circular.
“The foreign borrower shall be issued a CCI upon importation of capital for the purchase of collateral securities. The foreign borrower reserves the discretion to keep the cash collateral in Nigeria in foreign currency. In this situation, no CCI shall be issued for the collateral,” the bank stated.
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