Nigerian Stock Exchange Rules | KPMG | NG

Nigerian Stock Exchange Rules Governing Transactions With Related Parties

Nigerian Stock Exchange Rules

The objective of the Rule is to guard against the risk that “Interested Persons” could influence an “Issuer”, its subsidiaries or associated companies to enter into transactions that may have adverse impact on the interest of the Issuer or its Securities Holders.

1000

Related content

Nigerian Stock Exchange

The NSE issued a new rule governing transaction with related parties or interested persons (“the Rule”). The effective date of this new rule is 1 November 2014 and should be applied prospectively. For example, December year end entities would provide the disclosure requirements to comply with the Rule in their 31 December 2015 Annual reports and financial statements.
The objective of the Rule is to guard against the risk that “Interested Persons” could influence an “Issuer”, its subsidiaries or associated companies to enter into transactions that may have adverse impact on the interest of the Issuer or its Securities Holders.
The NSE requires entities within the scope of the Rule to consider:
• the objective of the Rule; and
• the economic and commercial substance of the Interested
  Person transaction instead of the legal form.

The Rule specifically excludes:
• Issuer whose equity securities are not listed on the stock exchange; and
• A foreign company with secondary listing on the stock exchange.

© 2017 KPMG Professional Services in Nigeria, a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Connect with us

 

Request for proposal

 

Submit