The Nigerian Exchange Limited has proposed new rules on block divestment and large-volume trades.
Market stakeholders were invited to share their feedback on the proposed rules in a notice to trading licence holders signed by the Chief Executive Officer of the NGX Regulation Limited, Olufemi Shobanjo, on Friday.
The amendment is to Trading Licence Holders Rules (Part XIIIA) on Block Divestments and Large Volume Trades.
The proposed change includes that “trade shall be treated as a block divestment where it involves: a transfer of shares amounting to five per cent,” it used to be 30 per cent.
“A transfer of shares or acquisition of additional shares amounting to five per cent or more of the company’s total listed shares within one year from the date of first transfer or acquisition of shares.
“Where The Exchange identifies a pattern of transactions suggesting a continued divestment process beyond the one-year threshold, such transactions may, at the discretion of The Exchange, be treated as a Block Divestment and subject to the applicable rules and requirements.”
