NEW CHANGES LIKELY IN STOCK MARKET RULES

The Nigerian stock exchange is contemplating tinkering with some sections of the Rules and Regulations guiding the market and so, has asked for comments from the investing public.
In a notice on its website this week, the NSE is proposing changes to Rules 15.31; 15.32 and 17.13.
According to the notice signed by Tinuade T Awe esq, General Counsel and Head of Regulation, the amendment to Rule 15.31 on block divestment in equities " will set new thresholds for trades that will be identified as block divestment"
It will also provide for the need for obtaining prior approval from the NSE with clear requirements for obtaining the approval and penalties for executing block divestment without prior approval.
In the case of Rule 15.32 proposed change, the emphasis is on what will constitute large volume trades in equities. Here too new thresholds for volume and value to be so treated as large volume trade will be stated and prior approval requirements will also be clearly stated. The amendment will also deal with penalties for non compliance.
Finally Rule 17.13 prohibits market manipulation and illegal dealings. It is to be amended to "provide clarity, certainty and sanctions to be imposed on market manipulators."
Awe posits that the amendments are meant to improve on the rules and regulation quality.
The notice then pleads with the public to access the rules and regulations of the market and forward their comments on the proposed amendments before March 18 in WORD document attached to email addressed to Mr Oluwatoyin Adenugba through oadenugba@nse.com.ng

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