NSE and Private Placements

[solainvest]

Proshare News

The Council of the Nigerian Stock Exchange, today in Lagos, has announced its decision to expand the functions of its Emerging Markets department to oversee activities in the area of private placement offers.



The NSE says the latest move was in a bid to take advantage of opportunities in the market and in line with global practice.



OPINION: the Emerging Markets department formerly known as SSM Department was created some 20 years ago to get more indigenous SME firms to list on the NSE. It is not yet clear how the latest NSE decision holds in view of the provisions of the Investment and Securities Act that puts the SEC in charge of securities market.

[BLUEMONEY]

Originally Posted by solainvest

Proshare News

The Council of the Nigerian Stock Exchange, today in Lagos, has announced its decision to expand the functions of its Emerging Markets department to oversee activities in the area of private placement offers.



The NSE says the latest move was in a bid to take advantage of opportunities in the market and in line with global practice.



OPINION: the Emerging Markets department formerly known as SSM Department was created some 20 years ago to get more indigenous SME firms to list on the NSE. It is not yet clear how the latest NSE decision holds in view of the provisions of the Investment and Securities Act that puts the SEC in charge of securities market.

Though the details of this new Directive is still very sketchy, I believe it is a step in the right direction. The PP Climate i believe needs the Oversight function of the NSE & SEC.

Having said that, i hope this new Directive will not bring any Unitentional Backlash on the market as we have seen from some of the Policies/Rules they have introduced to the Exchange. So i think the NSE & SEC should do thier homework thoroughly even as they unfold more details about this new Directive so as to prevent any negative impact on the market.

They should ask themselves how will the market react to the implementation of this Directive ????
if it is a NEGATIVE REACTION according to thier crucial findings, then they should just put it on hold because the market is already loaded with enough of that.
But if a POSITIVE REACTION will follow the implementation, then i think it is a welcome Idea and the market right now will need more of it.

[maxiakala]

It seems the NSE is just realizing that:
-Investors taste for PPs will not die and the nigerian investor is also interested in other capital market instruments.

-So much of the liquidity squeeze in the secondary market is as a result of a large quantity of money stucked in PPs yet to list.

[BLUEMONEY]

Originally Posted by maxiakala

It seems the NSE is just realizing that:
-Investors taste for PPs will not die and the nigerian investor is also interested in other capital market instruments.

-So much of the liquidity squeeze in the secondary market is as a result of a large quantity of money stucked in PPs yet to list.

You are right. they are now facing reality on ground. they thought that by introducing the "Listing at PP Price Rule" will Quench the Appetite of investors in PP. --- A Rule that they dont even Obey.

[muranay@yahoo.com]

Originally Posted by BLUEMONEY

You are right. they are now facing reality on ground. they thought that by introducing the "Listing at PP Price Rule" will Quench the Appetite of investors in PP. --- A Rule that they dont even Obey.

Let pray thier intervention will be in good faith and not to push up the price of the PP in a bid to give preference to secondary market.

[BLUEMONEY]

Originally Posted by muranay@yahoo.com

Let pray thier intervention will be in good faith and not to push up the price of the PP in a bid to give preference to secondary market.

if this thier intervention result in PP being sold at an abnormally high price, then they should be ready to buy it.