NSE unfolds fresh measure to promote compliance by listed firms
As part of efforts to further improve market transparency and integrity, as well as enhance the protection of investors in the capital market, the Nigerian Stock Exchange (NSE) will commence the use of enhanced Compliance Status Indicator (CSI) codes on the ticker tape for listed companies effective Monday, May 09, 2016.
Under this initiative, the Exchange will tag all listed companies with a three character code that indicates the compliance status of the listed company at any particular point in time.
According to a statement from NSE, the code will enable investors to make informed decisions whilst ensuring a transparent market guided by timely information.
“In all, the Exchange plans to review the codes currently existing in X-Compliance to make them more robust and informative as well as include new codes to provide investors with timely information”.
According to Ms. Tinuade Awe, General Counsel and Head of Regulation at the NSE, the revision of the existing codes and introduction of new CSI codes complement existing compliance structures of the Exchange.
She noted that the code would work in accordance to the X-Compliance report which is publish on a weekly on the website.
The initiative of the Exchange, according to her, which is in line with global best practices, was designed to maintain market integrity and protect the investors.
Speaking on the development, the Executive Director, Market Operations and Technology, NSE, Ade Bajomo said, “we are implementing the CSI code to improve the quality of our market data as well as ensure transparency in providing compliance related information about listed companies.
“The delivery of market data and associated services is an essential building block in the Exchange’s strategy as it seeks to reach a wider audience to improve market integrity and facilitate informed investment decision making”.
The NSE had earlier introduced the X-Compliance report in 2012 to ensure the investing public gets access to fulsome information on a timely basis. The Exchange also introduced the first ever Issuers’ Portal known as the X-Issuer in 2013.