Trading Floor of the Nigerian Stock Exchange

NSE places caveat on 13 listed firms, urges investors to be cautious

*May apply punitive measures should companies fail to file unaudited financial statements in 90 days

Isola Moses | ConsumerConnect

As a decisive measure to protect the interest of consumers and other stakeholders in the nation’s bourse, authorities of the Nigerian Stock Exchange (NSE) have warned investors to be wary when dealing with shares of 13 companies after the firms failed to meet regulatory deadlines for the submission of their financial statements without any explanation.

In a circular by the NSE, the 13 companies include Aso Savings and Loans Plc; Deap Capital Management & Trust Plc; DN Tyre & Rubber Plc; FTN Cocoa Processors Plc; Goldlink Insurance Plc; International Energy Insurance Plc; Medview Airline Plc; and Resort Savings & Loans Plc

Others are Staco Insurance Plc; Standard Alliance Insurance Plc; UNIC Diversified Holdings Plc; Union Dicon Salt Plc and Union Homes Savings and Loans Plc.

“Investors are advised to trade with caution on the securities of these companies in the absence of up to date financial information on them,” NSE stated in a circular.

The NSE, however, warned that it might suspend trading on the shares of the companies if they fail to comply with extant rules within the specified period.

The deadline for submission of the unaudited financial statements of the companies, according to the NSE, became due on June 29, 2020, being the extended due date as granted by the Stock Exchange.

By virtue of non-filing of the unaudited report by the due date, the companies violated extant rules at the NSE which provide that every company shall file its unaudited quarterly accounts not later than 30 calendar days after the relevant quarter.

Such a company should publish it within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s Web site, with the Web address disclosed in the newspaper publication, it said.

An electronic copy of the interim financial publication shall be filed with the Exchange on the same day as the newspaper publication in line with the regulations of the Exchange.

Meanwhile, Godstime Iwenekhai, Head, Listings Regulation Department, Nigerian Stock Exchange (NSE), has disclosed that the NSE had issued deficiency filing notice to the companies notifying them of their violations and mandating them to make public disclosure regarding the violation, the reasons for the violation and possible date for publication of the outstanding financial statement.

The defaulting companies failed to comply with the directives in the deficiency filing notice, according to the Stock Exchange.

As it engages with the companies on the need to comply with extant rules, the NSE warned that it may take additional punitive steps should they fail to comply and file their unaudited financial statements within the 90-day cure period, ending September 27, 2020.

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