Insider trading: Fidelity Bank bans directors, relatives from trading shares

FIDELITY Bank Plc has directed its  directors, managers and other high-ranking members of staff of the bank, as well as their related persons to stop the trading of the company’s equities on the floor of the Nigerian Stock Exchange (NSE).

The directive was necessitated to avoid insider trading because of the company’s vital information at their disposal, which they may use to affect the price of the stock at the exchange to the disadvantage of others.

According to a notice by the bank, these set of people have been prohibited by the financial institution to stop buying and selling of the stocks from Thursday, October 17, 2019 until the third quarter earnings of the bank are released to the NSE and the investing public.

Fidelity’s board of directors was planning to have a meeting on Thursday, October 24, 2019 for the consideration and approval of its results for the nine months ended September 30, 2019.

After the approval of the results by the board, the financial statements would be transmitted to the Central Bank of Nigeria (CBN), which would look into them and return to the bank before they are released to the public.

“This is to inform the Nigerian Stock Exchange and the investing public that in line with Fidelity Bank Plc’s Insider Trading Policy and the extant Issuers’ Rules of the exchange, the board of directors of Fidelity Bank Plc shall meet on Thursday, October 24, 2019, to consider the Unaudited Financial Accounts for the third quarter ended September 30, 2019.

“Consequently, all insiders and their connected persons are prohibited from trading (i.e buying, selling, transferring or otherwise dealing) in the bank’s shares from October 17, 2019 until the Unaudited Accounts for the quarter ended September 30, 2019 are released on the floor of the Nigerian Stock Exchange (NSE),” the notice said