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Tag: tightens

  • NSE tightens control on block divestment, large trades

    NSE tightens control on block divestment, large trades

    The Nigerian Stock Exchange (NSE) will today begin the implementation of new rules that give market authorities greater surveillance and control over block divestment and voluminous deals.

    This is being done to block loopholes that could be exploited by brokers to manipulate the stock market.

    Market sources said the amended rules on block divestment and large trades will enable the Exchange to proactively identify insider dealings and underlying forces behind some market-shaping transactions.

    While the existing rules on block divestment and large trades are not explicit about prior approval and applicable sanctions are not tied to value of the transactions, the new rules specifically require prior written approvals of the Exchange for such transactions and carry stricter sanctions tied to the value of the transactions.

    A market source said dealers and corporate insiders were known to take advantage of price-sensitive information without prior identification of such insiders. An investigation of an indigenous oil and gas company by the Exchange had shown such large-volume transactions that bordered on insiders’ dealings.

    The new rules which take off today change the thresholds for the designation of large trades and block divestment as well as instituting prior approval as a necessity before consummation of such trades.

    A copy of the new rules and amendments obtained by The Nation at the weekend indicated that contrary to the existing designation of large volume trade as five per cent of issued share capital of a company, a volume of 80 million shares or units or shares worth N800 million would henceforth be regarded as large volume that requires prior approval of the Exchange.

    As such, all dealing members or authorised clerks who wish to trade in any equity amounting to 80 million shares or units or more, and less than 30 per cent of an issuer’s total listed equities or trade value equal to, or in excess of N800 million, or such other threshold value or portion of listed equities as the Exchange may from time to time prescribe, for a given client account shall apply for and obtain the written approval of the Exchange before executing such large volume trades.

    Under the existing rules, a stockbroker is only required to notify the Exchange of any large-volume trade before or within 24 hours of executing such trades. The new rules make it mandatory to “apply for and obtain the written” approval of the Exchange before execution of such large trade.

    Also, while under the existing rules failure to obtain written approval by a stockbroker on its large volume trades carry 10-day suspension and a fine of N150,000, the new rules place a 10-day suspension and a fine of not less than five per cent of the block divestment or large trades.

    The Exchange also seeks to control block divestment through a more detailed regulatory framework. According to the new rules, a trade shall be treated as a block divestment where it involves a transfer of shares amounting to 30 per cent or more of a company’s total listed shares and the transferee shareholder is thereby able to take control of the listed company.

    Also, block divestment will apply where the acquisition of additional shares by a shareholder of a listed company, that would result in an increase in the shareholder’s total holdings to 30 per cent or more of company’s total listed shares; and the shareholder is thereby able to take control the listed company and where less than 30 per cent of a company’s total listed shares but will lead to a material change in the board or management of a listed company.

    “A dealing member that receives a mandate to execute a block divestment shall apply to the Exchange for approval to effect the mandate and shall not execute such a mandate without the said approval. Where a dealing member is in doubt as to whether a transaction will be treated as a block divestment, the dealing member should consult with the Exchange in order to address the doubt,” the rules stated.

    Application from the dealing member to the Exchange shall be in the form of a letter from the dealing member informing the Exchange about the mandate received and requesting approval for the block divestment. The letter shall be accompanied by a copy of the mandate which shall be in the form of a letter or an electronic mail from the shareholder to the dealing member and such other documents as the Exchange may from time to time require to be submitted for approval of a block divestment.

    Last Thursday, investors struck N3.84 billion deals for the transfer of 1.745 billion ordinary shares of Sterling Bank Plc on the normal trading floor of the NSE. The deals represented about 6.06 per cent equity stake in Sterling Bank. Investors struck 108 deals for the exchange of 1.745 billion ordinary shares of 50 kobo each of Sterling Bank valued at N3.84 billion. The turnover volume represented 6.06 per cent of the total issued share capital of Sterling Bank. Sterling Bank has 28.79 billion ordinary shares outstanding at the NSE.

  • Stock Exchange tightens regulation with new structure

    The Nigerian Stock Exchange (NSE) has promoted Ms Tinuade Awe to the  newly created office of Executive Director, Regulation as part of efforts to strengthen regulatory framework and surveillance at the stock market.

    Awe was, prior to her new appointment, the General Manager, Legal and Regulation Division of the Exchange, in which role she had also served as General Counsel of the Exchange. Her new appointment has already been approved by the Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator. The appointment took effect from January 1.

    As Executive Director, Regulation in the NSE’s revised organisational structure, Awe has oversight functions over broker dealer regulation, listings regulation, market surveillance and investigations and regulatory technology while the rules and interpretation and disciplinary units of the Exchange will also report directly to her.

    Nigerian Stock Exchange (NSE)President, Mr. Abimbola Ogunbanjo, said the Exchange was confident that Awe would continue to exert her influence and leadership  attributes in her new role for the betterment of the market and its stakeholders.

    “I am very proud that the National Council has recognised Tinuade for the exemplary role she has played in transforming the Legal and Regulatory landscape of the Exchange and would like to warmly congratulate her on her elevation as Executive Director, Regulation. Tinuade’s  passion, energy and commitment to driving and executing on the Exchange’s transformation agenda has no doubt been instrumental in  revolutionising the Exchange,” Ogunbanjo said.

    NSE Chief Executive Officer, Mr. Oscar Onyema, noted that as the Exchange restructures and repositions for the fourth industrial revolution, Awe’s well deserved promotion is indicative of the great career advancement opportunities that exist at the NSE.

    “I congratulate her and look forward to working with her in this new function to build a globally competitive self-regulatory organisation,” Onyema said.

    Awe reiterated her commitment to continuing to provide quality service to the Exchange and its ecosystem by engendering an improved compliance culture based on substantial engagement as well as deployment of appropriate enforcement mechanisms.

    She added that she will also continue to promote full embracement and further deployment of technology to serve regulatory purposes while also furthering regulatory remit through key relationships with other regulators.

    Awe is a consummate professional with varied professional experiences garnered across three continents.  She has an LL.B degree from the Obafemi Awolowo University, graduating as the Best Female Student in the Faculty of Law.  She finished at the Nigerian Law School with First Class Honours, graduating as Best Overall Student. She also holds LL.M  from the Harvard Law School, where she was a Landon H. Gammon Fellow, as well as The London School of Economics and Political Science (LSE), where she graduated with merit.  At the LSE, she was a British Council Scholar.  She is admitted to both the Nigerian and New York Bars.

    She had served as Secretary to the Council of the Exchange from January 2011 to October 2015.  Awe became affiliated with the Exchange in a consulting capacity in August 2010 and joined the Exchange in August 2012.  She has been a member of the Executive Committee of the Exchange since August 2012.

  • Command tightens security

    Niger State Police Command has deployed its personnel across the state to ensure a hitch-free Yuletide, spokesperson Abigail Unaeze said in a statement in Minna.

    She said the command had positioned its conventional and special units for the Christmas and New Year celebrations.

    Unaeze said the police were deployed in markets, recreational and worship centres and flash points to secure life and property.

    She said the phone numbers provided for the public in case of emergency include 08054472907, 08081777498 and 07031964389.

    The spokesperson urged the public to be security-conscious and report suspicious persons and objects to the nearest security agency.

     

  • Bayelsa tightens security in disputed oil communities

    Bayelsa State Governor Seriake Dickson has met with security chiefs to tighten security in communities sharing borders with Rivers State.

    Both states have been quarelling over the ownership of some oil wells.

    At the meeting, which was held in Yenagoa, the state capital, the State Security Council mapped out areas susceptible to attack and resolved to buy more gun boats to strengthen surveillance.

    Dickson said it was necessary in view of the boundary dispute in Oluasiri, Nembe Local Government Area.

    He said: “Effective patrol of the area would go a long way in forestalling a possible breakdown of law and order.”

    Dickson said Bayelsa had been rated as one of the most peaceful states.

    He urged security agencies to sustain the peace.

    Speaking with reporters after the meeting, operatives of the Joint Military Task Force (JTF), Operation Pulo Shield, assured the people of Oluasiri and Soku of adequate security.

    JTF Commander in the Niger Delta Maj.-Gen. Johnson Ochoga said: “The command is worried by the complaints of the people of Oluasiri that JTF officials deployed in Soku are neglecting Oluasiri.

    “I assure them that the JTF covers the nine states of the Niger Delta and is on ground to protect life and property in those states.

    “Whether the deployment is at Soku or Oluasiri, we are here for all of them. If there are security challenges, they can reach us and we will take appropriate measures.

    “Our physical presence at Soku should not bother anyone, because we are there for everybody.”

    Commissioner of Police Kingsley Omire said: “The waterways have been mapped out to identify areas where we have security challenges. At the next Security Council Meeting, areas where we have security challenges would be reported.”

    Omire said security agencies would work with community leaders to maintain peace.

  • Nigeria tightens security after US Embassy attacks

    Nigeria tightens security after US Embassy attacks

    Obama: justice will be done

    NIGERIA rose yesterday to the likely security challenges thrown up by violent demonstrations in some parts of the world sparked by a United States film believed to have been religiously offensive.

    The Inspector General of Police, Mohammed Abubakar, ordered tight security around police formations, embassies and foreign missions.

    Deputy Force Public Relations Officer Frank Mba said yesterday in a statement: “Consequently, the Inspector-General of Police, IGP Mohammed Dahiru Abubakar, has placed all police formations across the federation on red alert. In this regard, the IGP has directed all zonal AIGs and Command Commissioners of Police to ensure a 24-hour water-tight security in and around all Embassies and Foreign Missions in Nigeria as well as other vulnerable targets.

    “In addition, the AIG in charge of Intelligence and Commissioners of Police in charge of the various Police Special Squads, such as the Counter Terrorism Unit (CTU), Police Mobile Force (PMF) and Special Protection Unit (SPU) have been directed to ensure that their personnel are strategically deployed to prevent and nip all potential crises in the bud.

    “While assuring law abiding citizens of the readiness and capacity of the Nigeria Police to provide adequate security for life and property, the IGP warned potential trouble makers to stay off the streets of Nigeria as the nation’s security agencies will bring to bear the full weight of the law on all laws breakers.

    “The IGP also advised parents and guardians to monitor their wards closely to protect them from negative influences of mischief makers who may want to lure them into criminal and unwholesome acts.”

    The UN Security Council condemned the killing of the U.S. Ambassador to Libya and three other embassy staff.

    Ambassador Christopher Stevens and the others were killed in an attack by unidentified armed men.

    The Security Council’s condemnation was read by Ambassador Peter Wittig, the President of the Security Council during the Council session at the UN Headquarters in New York.

    “I am sure that I speak for all of us in strongly condemning the killing of the U.S. Ambassador to Libya and three other embassy staff and expressing our heartfelt condolences to our U.S. colleagues here and to the families and loved ones of the victims,” he said.

    The attackers stormed the grounds of the U.S. Consulate in Benghazi overnight, angered by a video produced in the U.S., which was said to have insulted the Prophet Muhammad.

    The United States said it was taking measures to protect its citizens worldwide.

    In Libya, witnesses say members of a radical Islamist group, Ansar al-Sharia, protested near the U.S. Consulate in Benghazi, where NATO jets established no-fly zones last year to halt ground attacks from then-Libyan strongman Moammar Gadhafi.

    The group then clashed with security forces in the city, blocking roads leading to the consulate, witnesses said.

    The US Secretary of State, Hillary Clinton, said in a statement.

    “Our hearts go out to all their families and colleagues,” Clinton said.

    “All the Americans we lost in yesterday’s attacks made the ultimate sacrifice. We condemn this vicious and violent attack that took their lives, which they had committed to helping the Libyan people reach for a better future,” she added.

    In an earlier statement, Clinton said she condemned the attack on the U.S. facilities “in the strongest terms” and that following Tuesday’s events, the U.S. government was “working with partner countries around the world to protect our personnel, our missions and American citizens worldwide.”

    Libya’s General National Congress also condemned the attack in Benghazi, saying it “led to the regrettable injury and death of a number of individuals.” Lawmakers said in a statement Tuesday night that they were investigating.

    President Barack Obama, delivering a statement in the Rose Garden, with Mrs Clinton at his side, said: “The United States condemns in the strongest terms this outrageous and shocking attack.” He said the US was working with the Libyan government to bring the attackers to justice.”Make no mistake, justice will be done,” Obama said, pausing slightly to underscore the declaration.

    The President said Ambassador Stevens had played a crucial role in the liberation of Libya and that he was an indispensable source of knowledge about what was happening in Benghazi, where he had been posted during the overthrow of Gaddafi.

    The President repeats a line from Clinton’s address: “There is absolutely no justification for this type of senseless violence. None.”

    United States officials say some 50 Marines are being sent to Libya to reinforce security at U.S. diplomatic facilities.

    The Marines are members of an elite group known as a Fleet Antiterrorism Security Team, whose role is to respond on short notice to terrorism threats and to reinforce security at U.S. embassies. They operate worldwide.

    The officials, who disclosed the plan to send the Marines, spoke on condition of anonymity because they were not authorised to speak publicly.