Lagos — The Nigerian Stock Exchange (NSE), Friday, said the new rule on par value is not yet effective.
The exchange, in a bulletin issued by Tinuade Awe, the head of legal and regulation division, titled: “The effective date of SEC approved rules”, said that a date when the approved rule of the exchange will become effective would be announced.
The implication of the rule is that equities price can be as low as N0.10 kobo per share, instead of the current nominal value of N0.50 kobo.
The NSE, last week, announced the approval of Securities Exchange Commission (SEC) pricing methodology of shares traded on the exchange that reduced the par value from N0.50 kobo to N0.10 kobo.
The announcement generated uproar among stakeholders, many of who argued that it was wrong for the NSE to amend the pricing methodology now.
Some financial analysts and shareholders believed that the rule will send a wrong signal to companies listed on the exchange.The NSE, Friday, said that after SEC has approved the rules, it was left for it to determine when the rules should become effective.According to NSE: “Thus, the effective date is the date on which market participants must start complying with or observing provisions […]