Receiving banks are banks designated by an issuer to receive proceeds. It is a scheduled bank carrying on all or any of the following issue related activities namely; acceptance of application and application monies; acceptance of allotment or call monies; refund of application monies and payment of a dividend or interest warrants.


Banker to an Issue has the following functions amongst others:-

  1. Acceptance of application monies from investors/receiving agents in respect of securities offers.;
  2. Refund of application monies which are not approved by the Commission in the name of the registrar to the lead issuing house;
  3. Refund of excess application monies in the name of the registrar to the issuing house within the stipulated days;
  4. Remittance of approved allotment monies with accrued interest within the stipulated days;
  5.  Other services ancillary to the function.

Registration requirements

Below are the requirements to be met before being a receiving bank in Nigeria, in accordance to Rule 112 of the Securities and Exchange Commission 2013;

(1) An application for registration as banker to an issue/receiving banker shall be made on Form S.E.C. 3 contained in schedule III to these rules and regulations and shall be accompanied by:-

(a) a minimum of two sets of completed Form S.E.C. 2 to be filed by the sponsored individuals;

(b) a copy of the certificate of incorporation certified by the Corporate Affairs Commission. Where a copy not certified is filed, the applicant shall present the original copy for sighting by an authorized officer of the Commission;

(c) a copy of Memorandum and Articles of Association of the applicant certified by the Corporate Affairs Commission which shall among others include the powers to perform the functions of banker to an issue and receiving bank;

(d) copy of the latest audited accounts or audited statement of affairs for banks in operation for less than one year;

(e) profile of the bank covering among others, its history, organizational structure, shareholding structure, principal officer’s type of services rendered and details of past and present activities;

(f) Fidelity bond issued by the Nigeria Deposit Insurance Corporation (N.D.I.C.);

(g) evidence of compliance with the minimum paid-up capital as stipulated by the Central Bank of Nigeria;

(h) a copy of CAC Form containing particulars of the directors certified by the Corporate Affairs Commission.;

(i) full address of head office and branches (if any);

(j) sworn undertaking to keep proper records and render returns as stipulated by the Commission;

(k) sworn undertaking to abide by the Act and the rules and regulations of the Commission;

(l) any other information or documents that may be required by the Commission from time to time.

(2) Rule 83 (3) and (4) shall, with all necessary modifications, apply in case of denial or suspension of registration of a banker to an issue/receiving banker.

(3) For the purpose of this function, mortgage bankers, micro finance banks and regional/specialized banks and such similar banks are not qualified to be registered as receiving bankers.


No entity is allowed to carry on any activity as a banker to an issue unless such entity has been registered. Also, the eligible banks permitted to serve as receiving banks are commercial/merchant banks.