The Nigerian Stock Exchange (NSE) yesterday suspended trading on 11 companies for failing to adhere to best corporate governance and extant post-listing requirements that make it mandatory for quoted companies to submit their financial statements within stipulated timelines.
The suspended companies included FTN Cocoa Processors Plc, Goldlink Insurance Plc, Guinea Insurance Plc, , Niger Insurance Plc, R.T. Briscoe (Nigeria) Plc, Resort Savings & Loans Plc, Lasaco Assurance Plc, Conoil Plc, Royal Exchange Plc, Standard Alliance Insurance Plc and Universal Insurance Plc.
In a circular signed by Head, Listings Regulation Department, Nigerian Stock Exchange (NSE), Godstime Iwenekhai, the Exchange indicated that the companies were suspended after they failed to file their accounts and operational reports as required by the listing rules at the Exchange. The suspension will remain in place until the companies file the relevant accounts and reports.
With the suspension, investors will not be able to trade on the shares of the companies.
Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period. Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31. While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.
NSE tags and applies fines on companies that fail to meet earnings reports’ deadline. Companies may pay fines that range from N100, 000 to more than N100 million as penalties for delay in the submission of their corporate earnings reports. Companies that also delayed their financial statements and accounts face threats of suspension and delisting in addition to the monetary fines.