SEC Approves New Rules For Nigerian Stock Exchange

The Securities and Exchange Commission (SEC) has approved new rules and amendments made by the Nigerian Stock exchange (NSE) in a bid to further deepen the stock market, the exchange announced on Wednesday.

The Commission approved the Exchange new rule on the free float for new listing on the stock exchange.
According to the new rule, for a company to qualify for listing on the boards of the NSE, the firm must ensure that 20 percent of the issued share capital is made available to the public and held by not less than 300 shareholders.
The new rule also stated that such free float should be worth not less than 40 billion naira or any amount stipulated by the NSE.
In the second rule on listing on the growth board of the Exchange, the NSE plans to create a platform for listing and financing start-ups, small, and medium enterprises with market capitalization between 50 million naira and an individual with aggregate net-worth total investment assets exceeds 100 million naira.
The rules, according to the NSE are designed to provide a practical guide to admission to listing on the entry segment and standard segment of the Exchange.
Other rules provide for Price Stabilization of Securities and the release calendar for regulatory announcements and filings of listed,
The other rules approved by SEC was the ‘Amendments to Dealing Members’ Rules (Part XVB) - Rules on Securities Transactions Between Dealing Members of The Exchange.”