The Nigerian Stock
Exchange (NSE) has released new rules for quoted companies and other
companies planning to be listed at the capital market.
The NSE, in a
statement on Monday, said, “After extensive public consultation
including dialogue with operators of the stock market, the Exchange has
completed the revision of its listing rules, the last review being in
1975,” and it is pleased to present the “new rules governing listing on
the NSE.” “In reviewing the new listing requirements, we took into
consideration the recommendations made by the Securities and Exchange
Commission (SEC), the Central Bank Public Debts Office, Stockbrokers
and comments received from other operators of the market during the
public consultation process,” the statement said.
In the new
guidelines, a letter of compliance or general undertaking is now needed
in post-listing requirements. “General undertaking is a pledge by the
agents or top management of the company or government agency to abide
by the Listing Requirements of The Exchange. This letter is normally
brought in signed by a director and secretary of the company to
officials of the Exchange who then brief the company secretary on the
rights and responsibilities of a publicly quoted company,” the
statement said.
The Exchange said
it will continue to conduct random evaluation, analysis and monitoring
of all the quoted companies in a bid to rationalise the prices being
made on the trading floors by stockbrokers and to complement the
companies that are not performing up to standard. “Sometimes we invite
top executives of the company for discussion if there is a persistent
poor performance,” it said.
The NSE also said
it will organise post-listing orientation for privatised companies.
“The board and management will have to be oriented to the new order or
expectation after privatisation through series of consultations and
grooming on the long-term perspective of the company and the changes
required to meet the desired standard of quoted company,” it said.
To issuing houses
and stockbrokers, the statement noted that application made to the
Stock Exchange for approval of quotation and to SEC for pricing and
registration “should be comprehensive with all the necessary documents
attached; that way processing,evaluating and approval time would be
significantly reduced.”
Performance remains up
Meanwhile, the
market capitalisation of quoted equities, on Monday, added N27.40
billion on its value as more equity prices appreciated across the board
on continued active buying.
The market
capitalisation moved up to close at N8.87 trillion as against the
appreciation of N57.54billion recorded last Friday to close at N8.84
trillion. The number of gainers at the close of trading session closed
higher at 47 stocks as against the 42 gainers recorded the previous
session while losers closed lower at 18 stocks compared with the 25
losers last Friday.