Home About Services Contact Advertise
Economy
Wealth of a Nation  |  Mineral Resources  |  Agricultue  |  Human Resources  |  Transportation  |  Customs & Immigration  |  Stock Exchange
Banking  |  Insurance  |  Tax  |  Law Enforcement
Stock Exchange

The Nigerian Stock Exchange was established in 1960 as Lagos State Exchange. In December 1977, it became the Nigerian Stock Exchange, with branches established in some of the commercial cities of the country.

The head office in Lagos was opened in 1961 and started operations in the same year with 19 securities listed for trading. Today there are 260 securities listed on the Exchange; made up of 17 Government stocks, 49 industrial loan (debenture/preference) stocks and 194 equity/ordinary

shares of companies, amounting to total market capitalisation of about =N= 615.7 Billion. Most of the listed companies have foreign/multinational affiliations and represent all cross sections of the economy; ranging from Agriculture through manufacturing to service.

Dealing Members Of The Nigerian Stock Exchange

The dealing members of the Nigerian Stock Exchange are institutions who, licensed by the exchange as stock brokers, can buy and sell securities quoted on the exchange on behalf of the investing public. A dealing member company is defined by the exchange as: "A company incorporated and registered under the company's Act which the exchange issued a license for the purpose of dealing in stocks, shares, and other securities listed on the exchange". There are 226 dealing members of the Nigerian stock exchange. Many of them are affiliates of banks and other financial institutions; employing people who have passed the authorised clerkship examination of the Nigerian Stock Exchange and the Chartered Institute of Stock Brokers of Nigeria.

Following the abrogation of the exchange control Act of 1962, and the Nigerian Enterprise Promotion Decree of 1989, foreign investors can now participate in the ownership of Nigerian stock broking houses. Section 5 (1&2) of the Administrative guideline for foreign investment through the Nigerian stock market provides that: "Dealing members of the Nigerian Stock Exchange can now accommodate foreign shareholders in their equity capital, or go into any form of partnership with foreign stockbrokers/firms. Applications from foreign stockbrokers as members of the Nigeria Stock Exchange can now be entertained within the rules and regulations of the Nigerian Stock Exchange; as well as registration with Securities and Exchange Commission and Corporate Affairs Commission".

Criteria For Dealing; And Ordinary Membership Of The Nigerian Stock Exchange

Applicant Company shall be Limited Liability Company with special interest in providing financial services to companies and investors. Accordingly, they must be registered with the Securities and Exchange Commission to carry on business as issuing and/or stock brokerage houses. Promoters of Applicant Company must be people of high integrity with proven expertise in the provision of financial services.

The minimum Authorised and paid up share capital of an applicant company shall be =N=20,000,000 (Twenty Million) Naira. Applicant Company shall be required to give an undertaking to:

[A]   Establish their head office in the area of Jurisdiction of the Branch Exchange they are affiliated with, and in at least one other office in any other area governed by another branch exchange or as may from time to time be prescribed by council.

[B]   Payment of the sum of N1, 000,000 (One Million) Naira or such other sum as council may from time to time prescribe towards the Nigerian Stock Exchange investors protection fund.

Application for membership shall include the following:

(1)   Profiles of Directors and Accredited representative.
(2)   Audited accounts or statement of affairs in lieu thereof
(3)   Any other information/document which the exchange may deem desirable for the proper consideration of the application accredited representative of an application company for purpose of dealing with the exchange shall be the Chief executive with the director as his alternate.

Source: Nigerian Stock Exchange Factbook 2000

Copyright © 2020 MediaTime Limited . All rights reserved Home   |   About   |   Blog   |   Contact   |   FAQS   |   Check Mail   |   Privacy