ABSTRACT
The Exchange started operation in 1960 with 19 securities listed for trading. Today, April 2008, there are 217 securities listed on the Exchange. The total market capitalization as at December 2008 stood at N9.5 trillion about ($80 billion). All listings are included in the only index, the Nigerian Stock Exchange All share index. The Exchange maintains an all share index formulated on 3rd January 1984. It opened at 100. Only common stocks (ordinary shares) are included in the computation of the index is value relative and is computed daily. As at December 2008 the all share index of NSE stood above 54,000. Transactions on the Exchange are regulated by the Nigerian Stock Exchange, as a self regulatory organization and the Securities and Exchange Commission (SEC). Recent laws given by SEC to guide the market is that any public offer should be 80% underwritten and the absorption of funds for over subscribed public offers should not exceed 25%. About three million individual investors and a host of institutional investors use the facilities of the Stock Exchange.
CLEARING, DELIVERY & SETTLEMENT
Clearing, Settlement and Delivery of transaction on the Exchange are done electronically by the central securities clearing system limited (CSCS) a subsidiary of the stock exchange. The CSCS Limited (the clearing house) was incorporated in 1992 as part of the effort to make the Nigeria stock market more efficient and investor-friendly. Apart from clearing, settlement and delivery the CSCS offered custodian services.
STOCK MARKET LEGISLATION
Transaction in the Stock market are guided by the following legislations among others: Investment and Securities Decree No. 45 1999 Companies and Allied Matters Decree 1990 Nigerian Investment Promotion Commission Decree 1995.
INTERNATIONALIZATION OF THE STOCK MARKET.
Following the deregulation of the capital market in 1993, the Federal Government in 1995 internationalized the capital market, with the abrogation of laws that constrained foreign participation in the Nigerian capital market. Consequent upon the abrogation of the Exchange Control Act 1962 and the Nigeria Enterprise Promotion Decree 1989 foreigners can now participate in the Nigerian capital market both as operators and investors. Also there are no limits any more to the percentage of foreign holding in any company registered in the country except for the banks which the Central Bank has put a peg of maximum of 10%. Ahead of this development, the Exchange has since June 2, 1987 linked up with the Reuters Electronic Contributor System. The online global dissemination of stock market information trading statistics, all share index, company investment ratios and company news (financial statement and corporate action).