NSE suspends 17 firms over accounts’ renditions, others

The Nigerian Stock Exchange (NSE) has suspended trading in the equities of 17 companies over failure to adhere to best corporate governance practices, and refusal to submit their accounts and operational reports.

The suspended companies include African Alliance Insurance Plc; Equity Assurance Plc; Fortis Microfinance Bank Plc; Guinea Insurance Plc; and Premier Paints Plc.
Others are Resort Savings & Loans; Sovereign Trust Insurance Plc; African Paints (Nigeria) Plc; Aso Savings & Loans Plc; Ekocorp Plc; Evans Medical Plc; Goldlink Insurance Plc; Great Nigeria Insurance Plc; Omatek Ventures Plc; and Union Dicon Salt Plc.

According to the exchange, the suspension took effect on Wednesday July 5, and will sustain until the companies submitted the relevant accounts.
NSE tags and fines on companies that fail to meet earnings reports’ deadline. Companies that also delayed their financial statements and accounts risk suspension and delisting in addition to the monetary fines.

The Exchange had on January 1st, launched its new sanction regime for delay in submission of companies’ results. Under the new sanction regime, 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.

Under the new rules, quoted companies are required to file their unaudited quarterly accounts with the NSE not later than 30 calendar days after the relevant quarter.

The account should also be published within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication.

Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the newspaper publication. Where the company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter.

For yearly audited accounts, companies are require to file their audited annual report and accounts with the Exchange not later than 90 calendar days after the relevant year end.

Such accounts should be also be published in at least two national daily newspapers not later than 21 calendar days before the date of the annual general meeting, and posted same on the company’s website with the web address disclosed in the newspaper publications.

Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the publication.