Sharemarket operator NZX has issued a "please explain" notice to Xero regarding a sharp fall in the company's share price.
NZX said that between July 9 and 10.30am this morning the accounting software provider's share price had dropped 23.11 per cent, from $18.86 to $14.50.
After initially falling nearly 8 per cent this morning, Xero shares have regained ground and are changing hands at $15.60 - down 0.89 per cent.
The sharemarket operator has requested Xero to confirm that it continues to be in compliance with its continuous disclosure requirements.
Xero chief financial officer Ross Jenkins said the company was in compliance with its continuous disclosure obligations.