Lagos, May 16, 2023 – Nigerian Exchange Limited (NGX) has reiterated its commitment to enforcement of regulations on transparency in the capital market.
It reminded investors of the need to comply with rules on disclosure of substantial holdings in listed companies.
The NGX drew attention to its earlier circular to the market recently in where it stated that lack of appropriate disclosures by investors was a breach of its rules and other extant market regulations.
According to NGX, non-disclosure can impact on market transparency and fairness as it creates information asymmetry.
This, according to experts, could hamper price discovery, regulatory oversight and the accuracy of public disclosures.
Jude Chiemeka, the Divisional Head, Capital Markets in NGX, said that NGX was 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.
“Refusing to comply with these guidelines creates information asymmetry, distorts public information and market data, and undermines the confidence of investors in our market.
“The Exchange will continue to take necessary actions to ensure compliance and promote a level playing field for all market participants.”
The circular reminded 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 it’s free float is in compliance with NGX’s free float requirements for the Board on which it is listed.”
NGX reminded investors and all stakeholders to be guided by the provisions of the above NGX rules and circulars. (GBN)
