January 25, 2018/InvestmentOne Report
The newly amended Pricing Methodology and the Par Value Rule of the Nigerian Stock Exchange which will take effect from January 29, 2018.
A summary of the changes made is stated below:
A summary of the changes made is stated below:
| Rule | Amendment/ Addition | Effective Date |
| Amendments to Dealing Members’ Rules (Part VII): – Rule 15.30: Pricing Methodology – Par Value Rule (Former Article 100A) | Notwithstanding its par value, the price of every share listed on The Exchange shall be determined by the market, save that no share shall trade below a price floor of one Kobo per unit (N0.01). | 29 January 2018 |
| Amendments to Dealing Members’ Rules (Part XI): – Rule 15.29: Pricing Methodology | (c) Price Movements, Price Limits and Tick Sizes (A) Group A: shall consist of equities with a Primary Market Maker that are not classified in Group B; and that are priced at One Hundred Naira (N100.00) per share or above for at least four (4) of the last six (6) months, or new security listings that are priced at One Hundred Naira (N100.00) or above at the time of listing on The Exchange. (B) Group B: shall consist of equities with a Primary Market Maker, that are priced above N100.00 at Five Naira (N5.00) per share or above but less than One Hundred Naira (N100.00) per share for at least four (4) of the last six (6) months, or new security listings that are priced at Five Naira (N5.00) per share or above but less than One Hundred Naira (N100.00) per share at the time of listing on The Exchange. (C) Group C: shall consist of equities that are priced at One Kobo (N0.01) per share or above but below Five Naira (N5.00) per share for at least four (4) of the last six (6) months, or new security listings that are priced at One Kobo (N0.01) per share or above but below Five Naira (N5.00) per share at the time of listing on The Exchange. Price Movements: the minimum quantity of equities traded that will change the published price of an equity security shall be as follows: (A) Group A: Ten Thousand (10,000) units. (B) Group B: Fifty Thousand (50,000) units. (C) Group C: One Hundred Thousand (100,000) units. Price Limits: the price movement band on any given Trading day shall be determined as follows: (C) Group C: +/- 10% based on the previous day’s closing price. (4) Tick Size: the minimum price movement that equities shall trade are as follows: (A) Group A: Ten (10) Kobo. (B) Group B: Five (5) Kobo. (C) Group C: One (1) Kobo. Small Trades: (1) Trades of fewer than Ten Thousand (10,000) shares in Group A, Fifty Thousand (50,000) shares in Group B, and One Hundred thousand (100,000) shares in Group C, shall be regarded by the ATS as small trades. Small trades in an equity security shall not result in a change in the publicly reported price of such security. | 29 January 2018 |
Please follow this link to view the FAQs for Par Value and Amendments to the pricing methodology.
