NSE PROPOSES NEW PRICE MOVEMENT BOTTOM.

The Nigerian stock exchange has made public a new proposal to change the present minimum allowed for equity price movements across the board and as usual, expect stakeholders to react to it.
According to a notice from Tinuade T Awe esq,general counsel and head, regulation, the target is Rule 15_19 that deals with price methodology.
It says specifically that "securities shall trade in price movements of one kobo" This is the minimum allowed now across the board.
Yet, goes the rational for the change being proposed " it is global best practice for exchanges to set price movements for securities in a manner which simplifies trading and promotes liquidity".
Hence instead of across the board minimum the following amendments are being proposed:
1) Classification of equities into groups for calculating price movements and price limits as follows:
A) Equities priced at N100 per share and above.
B) Equities priced between N5 and below N100 and
C) Equities priced between N0.01 and below N5.
2). Establishing of minimum quantity traded for there to be any price change to be:
Group A: 10,000 units from present 50,000 units.
Group B: 50,000 units from present 10,000 units
Group C: 100,00 units as a newly introduced minimum to be trade before price change can be allowed.
3). Finally, the minimum price movements being proposed are as follows:
Group A:  10 kobo per share
Group B:   5kobo per share
Group C:    one kobo per share.
Stakeholders are to respond latest by June 15 2015 through a word document attached to email addressed to Mr Oluwatoyin Adenugba of the regulation department through oadenugba@nse.com.ng
Of course, will be approved by the council of the NSE and then, the Securities and Exchange Commission before it can become effective.

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