Tuesday, April 15, 2014 )3.40PM / NSE Info
The Exchange wishes to advise its stakeholders that there is a lacuna in its current rule on pricing methodology. The relevant rule, Article 100, does not set forth a pricing methodology for determining the price movement where a new security is priced above N100.00 at the time of listing. In the circumstances, therefore, The Exchange has decided to take the most reasonable step in the interest of investors and the capital market. This is to treat the newly listed Seplat securities as “Group B” securities. As a “Group B” security, a trade of 10,000 units will lead to a change in the published price of Seplat.
2. To provide for similar instances in the future, The Exchange shall seek the following amendment to the Article 100 of the Rules and Regulations Governing Dealing Members: (additions in bold and underlined)
(d) Price movements and price limits.
(1) For purposes of calculating price movements and price limits, equity securities traded on the Exchange shall be classified as follows:
* Group A shall consist of equities with a Primary Market Maker that are not classified in Group B; and
* Group B shall consist of equities with a Primary Market Maker, that are priced above N100.00 per share for at least four of the last six months; or new security listings that are priced above N100.00 at the time of listing on The Exchange.”