NSE suspends six firms for failing to file accounts

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Regulatory hammer on Tuesday fell on six quoted firms following suspension by the Nigerian Stock Exchange for their inability to file corporate accounts as required.

The suspended companies are FTN Cocoa Processors Plc, Medview Airline Plc, Niger Insurance Plc, R.T. Briscoe (Nigeria) Plc, Union Dicon Salt Plc and Capital Oil Plc.

The NSE suspended trading on the shares of the companies with effect from Tuesday September 1 over their failure to file their audited financial statement for the year ended December 31, 2019.

Regulatory rules at the local bourse require all quoted companies to submit their annual audited report and financial statement not later than 90 days after the end of the financial year.

More than 85 per cent of quoted companies including all banks, insurers, major manufacturers, oil and gas companies and conglomerates use the Gregorian calendar year ending December 31 as their business year.

Thus, the deadline for the submission was Monday, March 30.

The disruptions caused by the COVID-19 pandemic had led both the NSE and Securities and Exchange Commission to extend the deadline for submission of annual report and accounts by 60 days, till May 29.

The NSE stated that the companies were suspended after the expiration of the grace period and many notifications demanding the submission of the financial statements.

“In accordance with the rules set forth, the suspension of trading in the shares of the listed companies will only be lifted upon the submission of the relevant accounts and provided the exchange is satisfied that the accounts comply with all applicable rules of the exchange,” NSE stated.

The NSE had in July warned investors to be wary when dealing with shares of 13 companies after they failed to meet regulatory deadlines for the submission of their financial statements without any explanation.

The 13 companies included Aso Savings and Loans Plc, Deap Capital Management & Trust Plc, DN Tyre & Rubber Plc, FTN Cocoa Processors Plc and Goldlink Insurance Plc.

Others are International Energy Insurance Plc, Medview Airline Plc, Resort Savings & Loans Plc, 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,” the NSE stated.

The Securities and Exchange Commission has said it would strictly enforce all rules that guide the operations of the capital market so as to restore investors’ confidence.

The Director-General, SEC, Lamido Yuguda, said this at his first capital market committee meeting which was attended virtually by over 240 stakeholders in the capital market.

The meeting marked the first interaction between the newly-inaugurated executive management team of the commission and the capital market community.

At the meeting, the SEC DG assured market participants of the commission’s collective commitment to continue implementing the ongoing initiatives of the Nigerian Capital Market Master Plan and other related initiatives targeted at developing our capital market.

He further promised to continuously seek ways of improving these initiatives, while efforts were being made to introduce new ones to the benefit of capital market stakeholders.

In order to increase the visibility and attractiveness of the capital market, he said the commission would work towards maintaining an environment that is enabled by the appropriate regulatory framework.

This, he noted, would be implemented through timely and affordable access to the capital market, zero tolerance for infractions, heightened investor confidence and awareness, innovative product development and good governance practices.

Source: PUNCH.

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