The Nigerian Exchange Limited, NGX has proposed an amendment to the trading license holders’ rules. In a statement during the weekend, the Exchange said that a block divestment and large volume trades would be amended.
It stated: “On 12 February 2018, the Amendments to Trading License Holders’ Rules (Part XIIIA), which include the Rules on Block Divestments in Equities, Rules on Large Volume Trades in Equities, and the Disclosure of Changes in Beneficial Ownership of Shares, (“the Rules”) became effective. “The Rules serve as a guide for monitoring and reporting the transfer of shares that are likely to have a significant impact on the total daily volume/value of executed trades on The Exchange and material changes in the shareholding/control structure of the Issuer.
“However, in reviewing applications and monitoring such trades, The Exchange has observed that certain market participants may be structuring trades to circumvent the Rules’ disclosure and compliance requirements”.
In response to these risks, the NGX has called for comments from various stakeholder as the amendment is subject to the approval of NGX RegCo’s Board, and the Securities and Exchange Commission, SEC.
The statement further said, “The Exchange views your participation as important for the following reasons: To create public awareness and solicit the public’s feedback on the proposed Rule amendments and to improve the quality of the proposed Rule amendments and thereby have a robust, well written set of Rules. We are involving as many stakeholders as possible in this commentary process in order to achieve the aforementioned goals. Please be assured that your comments will be considered in arriving at the final text of the Rule amendments”.
