The Nigerian Stock Exchange announced quoted companies may now apply for suspension of trading on their stock as the new rule on request for suspension of trading takes effect March 2, 2015. According to the circular issued, the new rule titled “Request for Suspension at the Instance of the Issuer” had been approved by the Securities and Exchange Commission (SEC) but its implementation was delayed.
Any request for suspension must be made to The Exchange in writing by the Issuer or the Issuer’s authorized representative or financial adviser and must be supported by the specific reasons which the issuer wishes The Exchange to take into account in The Exchange’s determination of whether or not trading in the issuer’s securities should be suspended.
The new rule places the onus on the issuer that requests a suspension of trading in its securities to satisfy the Exchange that a suspension would be necessary.
The rule was approved by SEC on May 19, 2014 after it was reviewed at the SEC Rules Committee meeting of January 30, 2014.