NGX Amends Chapter 17 (Information Disclosure) of the Issuers’ Rules
The Nigerian Exchange Limited (NGX), formerly known as, the Nigerian Stock Exchange, amended Chapter 17 (Information Disclosure) of the Issuers’ Rules(‘Rules’). The amendments were approved by the Securities and Exchange Commission on 9th April 2021 and came into effect same day.
Here, we highlight, in succinct details, the amendments made by NGX and the implication to Issuers in the capital market.
- All references to ‘securities’ were amended to read ‘products’: The NGX deleted the word ‘securities’ in the Chapter 17 of the Rules and replaced same with ‘products’. Further, product has been defined by the NGX to include Shares, Securities, financial products, derivatives and such other products as may be listed and traded on the Exchange from time to time. By Implication, the obligation of Issuers imposed by the Rules, will no longer be restricted to securities traded on The Exchange only but will extend to financial products, derivatives and such other products traded on The Exchange.
- Replacement of the phrase ‘Directors, persons discharging managerial responsibility and Advisers’ with the word ‘insider’. The responsibility of directors, persons discharging managerial responsibility and advisers not to trade in the Issuer’s product within a restricted time frame, has been extended to include all insiders, who are persons within or outside the Issuers’ organization who would be privy to price-sensitive information relating to the Issuers’ products.
- Change of the term ‘Free Period’ to ‘Open Period’. The period within which insiders of the Issuer can conduct their dealings with products of the Issuer has now been described as ‘open period’ rather than the former name longer ‘free period’.