Thursday, June 04, 2015 5.12PM/Cordros Capital
The Securities and Exchange Commission (SEC) has on 2 June 2015, approved the Par Value Rule submitted to it by the National Council of The Nigerian Stock Exchange (NSE) on 5 March 2015.
This is sequel to the draft Rule submitted (for stakeholders' comment) by the Rules and Adjudication Committee of Council of the NSE on 21 October 2014.
The Rule states that "notwithstanding its par value, the price of every share listed on The Exchange shall be determined by the market, save that no share shall trade below a price floor of one Kobo per unit (N0.01)".
Note however, that the NSE is yet to officially communicate when the implementation of the Rule will commence.