Wednesday, April 12,2018 11.00PM / Nigerian Stock Exchange
SEC Will Update Relevant Stakeholders on the Outcome of the Forensic Audit on OANDO
The Nigerian Stock Exchange (“NSE or “Exchange”) will like to clarify and confirm the status of trading in the shares of Oando Plc (“Oando”) which are currently on full suspension.
By a letter dated 9 April 2018 from the Securities and Exchange Commission (“Commission”), The Exchange was directed to lift the technical suspension placed on the trading of Oando’s shares.
In compliance with the Commission’s directive, The Exchange by a letter dated 10 April 2018, informed the Commission that it will lift the technical suspension placed on the shares of Oando effective 11 April 2018.
This action was duly effected and trading commenced without any impediment to price movement in the morning of 11 April 2018.
Subsequent to the lifting of the technical suspension, on 11 April 2018, ‘The Exchange’ received another communication from the Commission to maintain the status quo prior to the Commission’s letter of 9 April 2018, i.e., the technical suspension of trading in Oando’s shares.
In order to ensure compliance with the Commission’s further communication notwithstanding the fact that The Exchange’s systems cannot implement a technical suspension intraday, the Exchange suspended trading in Oando’s shares. The Exchange regrets any inconvenience that may have arisen due to the foregoing.
In the overall interest of investors in Nigeria’s capital markets, and following consultation with the Commission please be advised that at the start of trading today, 12 April 2018, trading in Oando’s shares will resume without any impediment in price movement consistent with the NSE’s market structure.
The Exchange shall endeavor to keep the investing public and the entire capital market ecosystem informed should there be any further developments on this matter.
Our message to investors today is that – what happened yesterday is regrettable and unfortunate, yet avoidable if the SRO and Regulator would subscribe to best practice. To sustain a technical suspension for months whilst supervision, examination and enforcement appears indefinite is unconscionable and against the principle the market was founded upon.
That said, the willingness to appreciate the ‘mistake’ and walk back the erroneous ‘signaling’ their action echoed globally yesterday is commendable, even as it remains muted because of the absence of a clear motive for the action, the reversal and regulatory chaos that ensued.
We are not certain what lessons we should draw from this, but remain convinced that whatever the outcome of the forensic audit; the signaling effect and lessons appears lost, if not in translation but in possible impact arising from regulatory uncertainty. - FA