The Nigerian Stock Exchange has released securities lending and market making guidelines, local newspaper The Nation reports.
High net worth individuals with at least N300 million ($1.9 million) and institutional investors can lend securities to borrowers under the securities lending program. The. NSE banned direct borrowing of securities by dealing members.
According to the guidelines, all market participants are allowed to sell short but in the meantime only market makers may execute a short sale transaction provided that they have borrowed the securities or have entered into a bona-fide arrangement to borrow the securities which will be available on the date of delivery. All other dealing members must have borrowed the securities before executing a short sale transaction.
(JDC)