The Nigerian Stock Exchange on Monday commenced the use of enhanced Compliance Status Indicator, CSI, codes on the ticker tape for listed companies.
A statement from the Exchange explained that the intiative is part of efforts to further improve market transparency and integrity, provide timely information for investment decisions as well as enhance the protection of investors in the capital market.
Under this initiative, the Exchange tag all listed companies with a three character code that indicates the compliance status of the listed company at any particular point in time.
“This compliance code will enable investors to make informed decisions whilst ensuring a transparent market guided by timely information.
“In all, The Exchange plans to review the codes currently existing in X-Compliance to make them more robust and informative as well as include new codes to provide investors with timely information,” it said.
The statement quoted General Counsel and Head of Regulation, Ms. Tinuade Awe, as saying that the revision of the existing codes and introduction of new CSI codes complement existing compliance structures of The Exchange and it will work in tandem with the X-Compliance Report which we publish weekly on our website.
She said, “This initiative of The Exchange which is in line with global best practices, is designed to maintain market integrity and protect the investors”.
Speaking on the development, the Executive Director, Market Operations and Technology, Mr. Ade Bajomo said the Exchange is implementing the CSI code to improve the quality of market data as well as ensure transparency in providing compliance related information about listed companies.
He added that the delivery of market data and associated services is an essential building block in the Exchange’s strategy as it seeks to reach a wider audience to improve market integrity and facilitate informed investment decision making.
It will be recalled that the NSE introduced the X-Compliance Report in 2012 to ensure the investing public get access to fulsome information on a timely basis. The NSE also introduced the first ever Issuers’ Portal known as the X-Issuer in 2013.
This has significantly reduced information leakage and has eliminated delays associated with the discharge of issuers’ post-listings obligations in a cost-effective and efficient manner. The Issuers’ Portal has also enhanced simultaneous disclosure of issuers’ information.