APA – Lagos (Nigeria)
The Nigerian Exchange Limited (NGX) has reiterated its commitment to supporting the enforcement of regulations that enhance transparency in the capital market by reminding investors to comply with rules on disclosure of substantial holdings in listed companies.
A statement by the NGX on Monday in Lagos recalled that a recent circular to the market by the Exchange stating that lack of appropriate disclosures by investors was a breach of its rules and other extant market regulations.
According to NGX, the act also impacted market transparency and fairness as it creates information asymmetry and could hamper price discovery, regulatory oversight and the accuracy of public disclosures.
The Divisional Head, Capital Markets of the NGX, Mr Jude Chiemeka, noted that NGX is fully committed to maintaining the integrity and transparency of the Nigerian capital market.
“We urge all investors to comply with our rules and regulations regarding the disclosure of substantial interests in listed companies,” he said.
He added that refusing to comply with these guidelines “creates information asymmetry, distorts public information and market data, and undermines the confidence of investors in our market and that the Exchange will continue to take necessary actions to ensure compliance and promote a level playing field for all market participants”.
According to the statement, the circular reminds investors of Rule 17.13 of the Rulebook of the Exchange, Issuers’ Rules, 2015, titled “Disclosure of Changes in Beneficial Ownership of Shares” which requires every Issuer to notify NGX immediately; about any transaction that takes the beneficial ownership of its shares to five per cent (5%) or more not later than ten (10) business days after such transaction.
The circular also quoted the Rulebook’s section on free float requirements, Rule 2.2 which states, “Each Issuer shall incorporate in its half-year financial statement filed with NGX its shareholding pattern, and also indicate whether or not its free float is in compliance with NGX’s free float requirements for the Board on which it is listed.
“Investors and all stakeholders are reminded to be guided by the provisions of the above NGX rules and circular,” it added.
GIK/APA
