The Nigerian Stock Exchange, in a notice issued on its website, has called for inputs from the investing public regarding its proposed rules and rule amendments.
The exchange is proposing the following amendments:
Amendments to Information Disclosure Rules
The Exchange is proposing amendments to Chapter 17 of the Issuers’ Rules with respect to information disclosure and reporting to The Exchange. The rules are being amended to provide clarity and further explanation on what The Exchange will consider as “price sensitive information”, as well as the requirements for reporting of price sensitive information to The Exchange.
Amendments to Issuers’ Portal Rules;
The Exchange is proposing an amendment
to:
(i) Rule 18.3: Accounting Standard, to include the word “rules”, to clearly indicate that
periodic and structured disclosures filed through the Issuers’ Portal shall comply
with standards as well as the rules of the Financial Reporting Council of Nigeria.
(ii) Rule 18:10: Sanctions for Breach of the Issuers’ Portal Rules, is also being amended
to include Rule 18.3 amongst rules for which a breach will attract sanctions, as well
as a review of the sanctions to include mandatory regulatory training with The
Exchange in the event of breach.
Amendments to Board and General Meetings Rules;
The Exchange is proposing an amendment to Rule 19.2, to include a requirement for Issuers to notify The Exchange within twenty-four (24) hours of receipt of required approvals from their primary regulators on any “price sensitive information”. Also, an amendment is being 2 Authorised Use Only – PUBLIC made to include a notification in writing to The Exchange of the date and time of Issuers’ Boards of Directors’ Meetings where “interim or audited financials will be considered”, or “any price sensitive information will be discussed at least seven (7) business days in advance”, as against the fourteen (14) days currently in the Rule.
Amendments to Premium Board Rules
For greater flexibility in the area of eligibility requirements to be met by Issuers, additional financial and liquidity criteria such as profit, cash flow, market capitalization, and asset, are being introduced. Finally, provisions which address The Exchange’s treatment of non-compliance with the minimum financial requirements are also included.
The Exchange is also proposing the following additions to the Issuers’ Rules:
- Draft Rules for Listing of Commercial Papers on The Exchange
- Proposed Cross Border Listing Rules.
Response and Timeline
Comments are to be sent not later than Monday, 18 December 2017. Your comments should be set forth in a WORD document attached to an electronic mail to Mr. Oluwatoyin Adenugba, Head, Rules and Interpretation Department of The Exchange at oadenugba@nse.com.ng.
The draft Rules are subject to the approval of the National Council of The Exchange, and the Securities and Exchange Commission.
Here is a link to the proposed amendments and additions.
