The Nigerian Stock Exchange (NSE) has explained why its earlier directive lifting the technical suspension earlier placed on Oando Plc’s shares was reversed and subsequently re-validated.
The Exchange linked the conflicting directives to directives by the industry regulator, the Securities and Exchange Commission (SEC),
The SEC had on Monday, through a letter directed the management of the Exchange to lift the suspension placed on the shares of Oando Plc.
However, the Commission, through another letter dated April 11, 2018, reversed its earlier directive contained in the 9th April letter.
Making clarification on its conflicting directives on the suspended stock’s trading, the NSE stated on Wednesday: “By a letter dated 9 April 2018 from the Securities and Exchange Commission, The Exchange was directed to lift the technical suspension placed on the trading of Oando’s shares.
“In compliance with the Commission’s directive, The Exchange by a letter dated 10 April 2018, informed the Commission that it will lift the technical suspension placed on the shares of Oando effective 11 April 2018. This action was duly effected and trading commenced without any impediment to price movement in the morning of 11 April 2018.
“Subsequent to the lifting of the technical suspension, on 11 April 2018, The Exchange received another communication from the Commission to maintain the status quo prior to the Commission’s letter of 9 April 2018, i.e., the technical suspension of trading in Oando’s shares.
“In order to ensure compliance with the Commission’s further communication notwithstanding the fact that The Exchange’s systems cannot implement a technical suspension intraday, the Exchange suspended trading in Oando’s shares. The Exchange regrets any inconvenience that may have arisen due to the foregoing.
“In the overall interest of investors in Nigeria’s capital markets, and following consultation with the Commission please be advised that at the start of trading tomorrow, 12 April 2018, trading in Oando’s shares will resume without any impediment in price movement consistent with the NSE’s market structure.
“The Exchange shall endeavour to keep the investing public and the entire capital market ecosystem informed should there be any further developments on this matter”, the NSE stated.