By Goddy Egene, 10.20.2010 

 

The World Federation of Exchanges (WFE) will soon grant the Nigerian Stock Exchange (NSE) its full membership following the latter’s current efforts geared towards improving corporate governance and instilling discipline among quoted companies. 

 

The WFE, which is an association of 52 regulated Exchanges around the world is 50 years old just as the NSE. But the NSE has remained an associate member with an observer status over the years. Johannesburg Securities Exchange Limited and Egypt Stock Exchange are already full members of the WFE.

 

However, it was gathered that impressed with the recent efforts by the management of the Exchange since the intervention of the Securities and Exchange Commission (SEC), WFE is considering granting the Nigerian bourse a full membership status. It was gathered that WFE’s officials at the just concluded General Assembly and Annual Meeting of the Federation in Paris last week, expressed satisfaction over the renewed efforts of  the NSE  to install discipline and sanitise  trading  activities on the  Exchange.

 

THISDAY checks revealed that as part of the process leading to the approval, officials of WFE are expected to visit the NSE to check through its systems and other relevant areas to get first hand information before the approval for full membership will be granted.Although the Spokesman for NSE, Mr. Sola Oni, did not comment on the planned visit of WFE officials, he confirmed to THISDAY via a text message that “NSE would become a full member (of WFE) soon. “Membership of WFE is open to regulated Exchanges, which are vetted according to certain criteria. 

 

Besides, the principles of WFE require members to work and provide orderly market operations that treat investors fairly, ensure transparency in their processes as well as assure clear, pertinent and accessible information from issuers. They are also required to strive and improve their work on investor and issuer focus, safety of financial assets, clarity of offerings for channeling savings into investments, transparency of the market transaction chain, systems that maintain the integrity of the market for price discovery, fair treatment for each category of participants, enforcement of listing requirements and trading rules, fair processes for definitive and timely settlement of disputes among others.

 

Market operators said that the Exchange was not putting enough efforts in most of these areas until recently. The management of the NSE led by the Interim Administrator, Mr. Emmanuel Ikazoboh, has intensified efforts to ensure compliance with listing requirements.

 

While technical suspension was placed on the share prices of many companies that failed to send in their financial results as required by the post-listing requirements, the NSE has marked others for de-listing next month.

 

Source:ThisDay