NEW REGULATIONS AT THE NIGERIAN STOCK EXCHANGE

The Nigerian Stock Exchange (NSE) has introduced new rules and regulations that will take effect from Tuesday December 1, 2015.
The change involves a total of 31 articles either amending old provisions or introducing new ones.
In all of the 31 rules and regulations. 17 were brand new articles that did not exist before while about 14 were amendments to existing rules.
In a nutshell, the 31 rules and regulations are intended to engender more corporate dealing responsibility on the part of dealing members of the exchange and authorised clerks who deal on the floor on in their name and on behalf of the investing public.
They try to address various present day issues like money laundering; and other equally relevant rules aimed at preserving the goodwill of the market; protecting investors from unprofessional conducts and establishing quite clearly proprietary and authority of the Exchange and the apex government overseer. the Securities and Exchange Commission (SEC).
The 31 new rules and regulations address issues like minimum net liquidity capital of dealing members; monthly financial statement of accounts to clients; new measures to check money laundering through the market; more ethical and professional dealings with clients and between dealing firms; disclosure obligations of members and authorised dealing clerks; investor protection fund and cash settlements, amongst others.
The history of the new rules and regulations dates back to 2013 when stakeholders consultation forum was organised before recommendations were reviewed by the Rules and Regulations Committee of the Council in two sessions from October 18 to 19 then November 8 to 9, 2013.
Eventually, the revised rules and regulations were submitted to SEC for consideration on February 28, 2014 and a formal approval was received from SEC on June 5, 2014.
( Keep a date on Monday for posts on how the new rules affect investors and dealing members)

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