Intervention by the FG in the NSE
donne4real | August 27, 2008
As part of efforts to restore investor confidence in the stock market, the Federal Government announce the following steps:
- NSE with effects from Wednesday, August 27, 2008 (today) will reduce its fees by 50 percent.
- Stabilization fund will be established with its modalities to be worked out very soon.
- The Office of the attorney general of the federation has been directed to issue an exemption to the provision of the relevant sections of the company and allied matter act, 1990 on share buy backs to permit quoted companies buy up to 20 percent of their shares.
- Banks were also advised to restructure existing credit facilities extended to market players to allow for longer repayment periods.
- CBN is also taking appropriate measures to review the liquidity situation in the economy and appropriate measures to improve the liquidity in the system if required.
- NSE is also taking steps to review its trading rules and regulations. In the interim, effective from today; one per cent maximum downward limit on daily price movement whilst the current five percent limit on upward movement is retained.
- SEC will also release guidelines for market makers on the NSE before the end of the week and delist moribund companies earlier advertised.
- There will be strict enforcement of NSE listing requirement with zero tolerance for infractions.
- Nigerian banks will also partner with market maker to inject fund into the capital market through appropriate structured credit facilities.
