The Securities and Exchange Commission (SEC) says it is investigating the technical suspension imposed on the shares of Access Bank by the Nigerian Stock Exchange (NSE).
Technical suspension refers to a former NSE operational practice, where share prices of quoted companies involved in capital raising are frozen from gaining or losing during daily equity transactions.
In a statement posted on its website, SEC indicated that the suspension contradicted its earlier directive that no company should be technically suspended during such transactions.
“The attention of the Commission has been drawn to a number of publications regarding the recent technical suspension placed on trading of Shares of Access Bank PLC by the Nigerian Stock Exchange,” it said.
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“The Commission is aware that the Nigerian Stock Exchange in September 2014 placed the trading of Shares of Access Bank PLC on technical suspension following the proposal of Rights Issue by the Bank.
“It was in furtherance of this discontinuance of technical suspension of trading in listed securities in the Nigerian Capital Market that the Commission directed the NSE on September 23, 2014 to immediately lift the technical suspension on Access Bank PLC Shares and the Exchange has since complied with the directive.
The commission also wondered why no such suspension was placed on the shares of other listed companies who undertook capital raising recently.
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SEC did not name the team probing the NSE but recalled that in September, the exchange placed the shares of the bank on technical suspension following its proposal to float a rights issue.
It however stated that the NSE had lifted the technical suspension in response to a letter from the commission on September 23.
“In furtherance of this discontinuance of technical suspension of trading in listed securities in the Nigerian capital market that the Commission directed the NSE on September 23, 2014 to immediately lift the technical suspension on the bank’s shares,” it said.
“The commission reiterated that no technical suspension should be placed on the securities of any company involved in capital raising in the Nigerian bourse in order to avoid unfair market practice.”
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The commission assured stakeholders of its commitment to ensure the sustenance of investor confidence and the integrity of the Nigerian capital market.
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