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NZX toughens stance on share price moves

NZN 25/05/2016 Pattrick Smellie

NZX is to start making confidential enquiries of listed companies that experience large, unexplained share price movements.

The stock market operator wants to determine whether they may be holding undisclosed material information even while remaining in compliance with the market's Listing Rules.

NZX also warned investors not to assume that a listed entity's Listing Rules compliance statements meant they did not have material information in their possession which would potentially require eventual disclosure.

Examples might include a company that is close to concluding a major transaction, but whose board has yet to sign off the deal.

NZX said it would continue to seek a public explanation from listed issuers for large, sudden share price movements.

Under the new step it was particularly interested in how the issuer has maintained confidentiality. It is implementing the changes without formal consultation.

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