Impact of De-listing on Investors!!!

The NSE ALL-Share index and Market Capitalization appreciated by 2.55% and 2.36% to close the market at 27,116.45 and 9.3 trillion respectively.

The NSE trading platform comprises of the main board, Asem and Premium Board. The market is segmented in such a way to include low and high Market Capitalization. It follows that a comprehensive range of product which includes share (Equities) Exchange Traded Funds (ETFs) and bonds are listed on the board of NSE.
A listing on any of the boards require high standard of Disclosure, Corporate Governance and Internal Regulation. This is to ensure Market Transparency and Integrity of the listed securities. Therefore, listing on the NSE exposes companies to price discovery and opportunities to access long-term capital.

The Exchange can delist Securities where the issuer has not complied with the listing Rules of the Exchange, or for breach of the terms and conditions of the General undertaking executed by the them when their securities were listed by the Exchange. The securities can also be delisted on voluntary application. Other reasons include where the National Council of the Exchange (council) deem fit in the interest of the public that securities and issue.

The shareholders of the affected companies will retain their status as shareholders and maintain all Rights and Privileges accruable to them as Shareholders. However, the effect of the delisting on the Shareholders is that their securities can no longer be traded on the Exchange. Although the issuer will still maintain its status as a public limited Company, it will not be subject to the strict regulatory regime of the Exchange which stimulates and improves Corporate Governance and increase in Shareholders value.

The following companies have been delisted from daily official list of the Exchange effective 18th May 2016, IPWA Plc, G.cappa Plc and West African Glass Industries Plc. (WAGI). Investment & Allied Insurance Plc also together with ALUMACO Plc. Jos International Breweries Plc, Adswitch Plc and Rokanna Plc were all inclusive.

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