Nigerian Exchange suspends 4 firms, set to delist 3 others for violations

*The Nigerian Exchange Limited says it has suspended trading in the shares of four firms as the NGX is also in the process of delisting three other listed companies for failure to file the relevant, mandatory accounts

Isola Moses | ConsumerConnect

For the listed firms’ apparent failure to adhere to the market regulatory criteria, the Nigerian Exchange (NGX) Limited has suspended trading in the shares of four firms in 2021, just as the regulator is in the process of delisting three other companies.

It was learnt the NGX Regulation Limited, which disclosed this development, said in a report that Chellarams Plc, Niger Insurance Plc, the Tourist Company of Nigeria Plc, and Thomas Wyatt Nigeria Plc were suspended for failure to file the relevant accounts by the expiration of the cure period.

Trading in the shares of Rak Unity Petroleum Company Plc was suspended due to a winding up of the company as approved by its shareholders at the time.

Trading Floor of Nigerian Exchange Limited

Similarly, the Tourist Company of Nigeria Plc, Multi-Trex Integrated Foods Plc, and Union Diagnostics & Clinical Services Plc were listed as currently undergoing delisting by the NGX RegCo.

NGX RegCo cited Rule 3.1 of the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange, which says “if an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: send to the issuer a ‘second filing deficiency notification’ within two business days after the end of the cure period; suspend trading in the issuer’s securities; and notify the Securities and Exchange Commission and the market within 24 hours of the suspension.”

In a related development, Nigerian Exchange Limited has placed Deap Capital Management and Trust Plc on the NGX RegCo’s delisting watch list, report said.

The NGX Exchange had approved that the company be placed on the watch list subject to filing its quarterly compliance report.

Likewise, NGX RegCo also placed nine firms on restructuring status.

These firms include Omatek Ventures Plc, Aso Savings & Loans Plc, FTN Cocoa Processors Plc, Goldlink Insurance Plc, and International Energy Insurance Plc.

Others are Thomas Wyatt Nigeria Plc, Union Dicon Salt Plc, Union Homes Savings & Loans Plc, and DN Tyre & Rubber Plc.

Recall in early August 2021, more companies reportedly defaulted in filling their financial statements on the Nigerian Exchange Limited NGX.

As of end of first half 2021, H1’21, 33 of them defaulted, up by over 103 percent from 16 last year, according to report.

This comes as 11 banks paid N2.3 billion in penalties for various regulatory infractions in the financial year ended December 2020 in the country.

ConsumerConnect reports the listed companies on the Exchange are required to file their financial statements on a timely basis in accordance with the listing rules of the NGX.

For annual audited financial report, listed companies are required to submit their reports three months after the end of the financial year.

The Exchange indicated that a total of N190.6million was imposed as sanctions for flouting the post listing requirement in 2021, as against N99.8million in the previuos year, representing 122 percent increase.

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