NGX Suspends trading in shares of Ardova, Royal Exchange, seven others
The seven companies are: Niger Insurance, C&I Leasing, African Alliance Insurance, Coronation Insurance, Ekocorp, Premier Paints and Mutual Benefits Assurance.
The suspension, which takes effect from yesterday, July 1, 2022, implies that there would be no price movement on the shares because the company’s investors would no longer trade on their stocks.
A circular issued by the bourse explained that the affected firms were slammed for failing to file their Audited Financial Statements (AFS) for the year ended December 31, 2021.
In the disclosure, the NGX stated that its action was based on Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, (Default Filing Rules).
The law empowers the bourse to suspend trading in defaulter’s stocks if it “fails to file the relevant accounts by the expiration of the cure period.
Also, within 24 hours after placing a suspension on the trading in the shares of any defaulting public firm, the NGX must “notify the Securities and Exchange Commission (SEC) and the market.”
In the circular, the bourse declared that “trading in the shares of nine companies (above) been suspended from the facilities of the NGX effective today, Friday, July 1, 2022, having failed to file their Audited Financial Statements for the year ended December 31, 2021.”
However, it emphasised that “the suspension of trading in the shares of the above-mentioned companies will only be lifted upon the submission of the relevant accounts, provided NGX Regulation (NGX RegCo) Limited is satisfied that the accounts comply with all applicable rules of NGX.”