SPECIAL REPORT: How lax regulation allows firms ‘manipulate’ Nigeria’s stock market
The remaining 80 per cent could be held by a league of privileged investors called insiders, often comprising directors and their relatives, promoters and, in some cases, governments. The premium board has an elite class of companies that meet the most stringent corporate governance, capitalisation and liquidity parameters.
Yet, even with these troubling implications, the defaulting public companies have not broken any regulation or law. The regulators, the Nigeria Exchange Limited and regulator the Securities and Exchange Commission , have provided a leeway for companies to sidestep the 20 per cent requirement, by requiring that they alternatively ensure the value of their shares in the public’s hand is equivalent to N40 billion or N20 billion minimum.
Skyway Aviation Handling Company PLC, acquired by the Sifax Group from the Nigerian government after privatisation in 2009, is almost 100 per cent owned by its chairman, Taiwo Afolabi, and his wife, Folashade Afolabi, as of August 3,from African ‘Xchanges, a website which tracks all the stock exchanges in Africa shows. Its free float is less than one per cent.
A list containing sanctioned individuals and firms which the NGX shared with PREMIUM TIMES does not include SAHCO. The list contains mostly small stockbroking firms and a few individuals and dates between 2013 and 2018.Rule 12.2 subsection B5 of NGX’s rulebook says premium board firms may choose to disregard the 80 per cent limit provided the value of their shares in the public’s hand is equivalent to N40 billion minimum.
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: LeadershipNGA - 🏆 4. / 77 Read more »