By Daniel Osunkoya, January 25, 2011 01:59AM
The Nigerian Stock Exchange (NSE) has released new rules for quoted companies and other companies planning to be listed at the capital market.
The NSE, in a statement on Monday, said, “After extensive public consultation including dialogue with operators of the stock market, the Exchange has completed the revision of its listing rules, the last review being in 1975,” and it is pleased to present the “new rules governing listing on the NSE.” “In reviewing the new listing requirements, we took into consideration the recommendations made by the Securities and Exchange Commission (SEC), the Central Bank Public Debts Office, Stockbrokers and comments received from other operators of the market during the public consultation process,” the statement said.
In the new guidelines, a letter of compliance or general undertaking is now needed in post-listing requirements. “General undertaking is a pledge by the agents or top management of the company or government agency to abide by the Listing Requirements of The Exchange. This letter is normally brought in signed by a director and secretary of the company to officials of the Exchange who then brief the company secretary on the rights and responsibilities of a publicly quoted company,” the statement said.
The Exchange said it will continue to conduct random evaluation, analysis and monitoring of all the quoted companies in a bid to rationalise the prices being made on the trading floors by stockbrokers and to complement the companies that are not performing up to standard. “Sometimes we invite top executives of the company for discussion if there is a persistent poor performance,” it said.
The NSE also said it will organise post-listing orientation for privatised companies. “The board and management will have to be oriented to the new order or expectation after privatisation through series of consultations and grooming on the long-term perspective of the company and the changes required to meet the desired standard of quoted company,” it said.