Friday, February 19, 2016 11:22 AM / NSE
The Exchange is proposing the following amendments to the Rulebook of The Exchange, 2015, under its Dealing Members’ Rules.
Summary of Proposed Rules and Amendments
A summary of the proposed amendments are set forth below:
a. The amendments to Rule 15.31 on “Block Divestments in Equities” will set the new thresholds for trades that The Exchange will identify and treat as block divestments. The amendments also impose the need for obtaining The Exchange’s approval for block divestments, stating the requirements for obtaining The Exchange’s approval, and the penalties for executing a block divestment without the prior approval of The Exchange.
b. The Exchange proposes to amend Rule 15.32 on “Large Volume Trades in Equities” by setting the new thresholds for the volume and value of trades that The Exchange will identify and treat as large volume trades. The amendments also impose the need for obtaining The Exchange’s approval for large volume trades, stating the requirements for obtaining The Exchange’s approval, and the penalties for executing a large volume trade without the prior approval of The Exchange.
c. Rule 17.13 titled “Prohibition of Market Manipulation and Illegal Market Dealings” is to be amended further to provide clarity and certainty around the forms of sanctions that The Exchange may impose for market manipulation and illegal market dealings.
Invitation for Comments
The Exchange is pleased to invite you to participate in its rule making process. Your participation is required by way of reviewing the draft amendments, and providing your comments thereon.
A set of the draft amendments may be viewed through the link provided here.
The Exchange views your participation as important for the following reasons:
· To create public awareness and solicit the public’s feedback on the draft amendments;
· To improve the quality of the Rules and thereby have a robust, well written set of Rules.
We are involving as many stakeholders as possible in this rule making process in order to achieve the aforementioned goals. Please be assured that your comments will be considered in arriving at the final text of the Rules.
Response and Timeline
We will be grateful to receive your comments not later than the close of business on Friday, 18 March 2016. Your comments should be set forth in a WORD document attached to an electronic mail to Mr. Oluwatoyin Adenugba of the Rules and Interpretation Department of The Exchange at firstname.lastname@example.org
Please note that the draft Rules are subject to the approval of the National Council of The Exchange and the Securities and Exchange Commission.