The Nigerian Exchange Limited (NGX) has proposed stricter rules for block divestments and large-volume trades. These proposed amendments to the Trading Licence Holders Rules (Part XIIIA) aim to enhance transparency and ensure full disclosure of significant share transfers.
Key changes include a reduction in the threshold for what qualifies as a block divestment, lowering it from 30% to 5% of a company’s listed shares. Additionally, any transfer of 80 million units or more, or transactions worth at least N800 million within a year, will now require approval from the exchange before execution.
NGX officials explained that the changes were prompted by attempts to circumvent existing rules. The aim is to close gaps in the system and reinforce market integrity by improving monitoring and reporting practices.
