The Nigerian Stock Exchange (NSE or the Exchange) recently released amendments to some sections of the Rulebook of the NSE (the New Rules). Although approved earlier in the year, these amendments only came into effect on 01 November 2017.
At its core, most of the amendments relate to the dealing members rules. Specifically, the New Rules address the provisions relating to classification of registration of dealing members, prohibition of market manipulation and illegal market dealings, advertising and communicating with the public, order handling and best execution and block divestments. The New Rules also amend some of the issuer and investor provisions in the previous rules.
The focus of this article is the major changes brought about by the New Rules which impacts listed companies on the Exchange.
Key Changes – Delisting
The NSE Rulebook provides two methods for delisting the securities of a company from the Exchange: voluntary and regulatory. Delisting is the removal of listed securities of a company from the daily official list of the Exchange (Exchange’s Daily Official List), such that the securities can no longer be traded on the Exchange. 5. Although the New Rules do not alter or modify these methods for delisting, the New Rules introduce transparency and clarity on the procedure for delisting.
