Under this initiative, the Exchange tags 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.
According to Ms. Tinuade Awe, General Counsel and Head of Regulation at the NSE, “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. 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, NSE, Mr. Ade Bajomo said, “we are implementing the CSI code to improve the quality of our market data as well as ensure transparency in providing compliance related information about listed companies. 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.