The Nigerian Stock Exchange (NSE) will begin implementation of its new free float rules as from the first working day in 2020.
The NSE, which had suspended the implementation of the new rules on May 31, 2019, yesterday indicated that the new rules will now take effect on January 02, 2020. The new rules were initially scheduled to take effect on Monday June 3, 2019.
Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) had approved the new rules on May 06, 2019.
The new rules require quoted companies to indicate their shareholding structure and compliance level with the minimum number of shares or capitalisation being held by minority retail shareholders in their half-year reports.
Under the existing rules, companies are only required to indicate shareholding structure in full-year report and are not under obligation to categorically indicate compliance with free float.
Free float, otherwise known as public…