Following the revocation of the license of troubled Skye Bank Plc by the Central Bank of Nigeria (CBN) on Friday evening, management of The Nigerian Stock Exchange (NSE), announced suspension in the shares of the bank from trading on its floor effective Monday, September 24, 2018.
Th decision to suspend trading on the shares of Skye Bank which had been under interim board and management since September 4, 2016, the NSE said, is in exercise of its powers pursuant to the Rules on Suspension of Trading in Listed Securities, Rulebook of The Exchange (Issuers’ Rules).
According to Section 7.0 of the Rules: “Notwithstanding any of the foregoing provisions, The Exchange, may in accordance with any of its Rules, place the trading of any security on Suspension. It may also do so if it is of the view that such suspension will be in the interest of the investing public and in accordance with the SEC Rules.”
Also, Section 8.3, further states that: “As provided in Rule 15.45: Suspension on Trading of Securities, Rulebook of The Exchange, 2015 (Dealing Members’ Rules):
“(a) The Chief Executive Officer of The Exchange or in his absence his authorized designee may:
(1) halt or suspend trading in one, some or all securities traded on The Exchange,
(2) close some or all Exchange facilities, and/or
(3) determine the duration of any such halt, suspension or closing.
“He shall implement such a halt, suspension or closing only when he deems such action to be necessary or appropriate to the maintenance of a fair and orderly market or for the protection of investors, or otherwise in the public interest, such as in the case of actual or threatened physical danger, civil unrest, terrorism, acts of war, or the loss or interruption of facilities used by The Exchange.
“(b) The Chief Executive Officer or his authorized designee shall notify the Council, and the SEC of actions taken pursuant to this Rule, immediately or not later than twenty-four (24) hours after the occurrence of the event and shall describe the factors contributing to the decision to halt or suspend trading and/or close The Exchange’s facilities.
“(c) The Chief Executive Officer, or in his absence his authorized designee may close The Exchange’s facilities upon the direction of a governmental agency in a force majeure situation and shall notify the SEC immediately or not later than 24 hours of such closure.”
In its statement announcing the revocation of the banking license, the CBN, while assuring the public of the safety, soundness and resilience of Nigeria’s banking industry, and a commitment to continue promoting stability in the banking and financial system, assured that all employees of Skye Bank shall be absorbed by the bridge entity- Polaris Bank.
This will however be under a new contract, “unless any employee decides to opt out,” even its announced the retention of the interim board and management of the failed Skye Bank, giving their “good performance.”
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