The Securities and Exchange Commission, SEC, has asked the Nigerian Stock Exchange, NSE, to immediately put a stop to the practice of placing on technical suspension trading on shares of companies listed in the capital market.
The capital market regulator said on Thursday that the order became necessary in the wake of media publications regarding the September decision by the NSE to place suspension on trading of shares of Access Bank PLC following the proposal of Rights Issue by the Bank.
The Commission reiterated its directive to the NSE earlier in September 2009 to discontinue the practice of placing securities of listed company on technical suspension during capital raising exercise as it is not a best practice.
In furtherance of the directive, the Commission in conjunction with the Nigerian Capital Market directed the NSE on September 23, to immediately lift the technical suspension on trading on listed securities.
The management of Access Bank PLC has since complied with the directive.
The directive outlawing technical suspension on trading in the securities of any company involved in capital raising in the Nigerian Capital Market, the Commission said, was to avoid unfair market practices.
The Commission said it was, however, investigating the circumstances surrounding the action of the NSE in imposing the technical suspension on Access Bank PLC Shares, as no such suspension was placed on the Shares of other listed companies who undertook capital raising recently.
The Commission reassured the investing public and stakeholders of its commitment to ensure the continued sustenance of investor confidence and the integrity of the Nigerian Capital Market.