• May Suspend Trading On Defaulting Stocks After June 29
In line with its Zero Tolerance Policy on Infractions and 100 days after the end of their last full year (10 days beyond the 90-day) deadline given under its rules for filing their audited financials, the Nigerian Stock Exchange (NSE), on Monday published a list of 11 companies that have neither complied with its post-listing requirements nor sought approval to delay their results.
In its notice, titled “filing deficiency,” the exchange said the companies including three insurance firms and an petroleum products marketing giant- Conoil, had contravened Rule 2.2.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook (Issuers’ Rules).
They are:
i. A.G LEVENTIS NIGERIA PLC
ii. AFRICAN ALLIANCE INSURANCE PLC
iii. AUSTIN LAZ & COMPANY PLC
iv. CAPITAL HOTEL PLC
v. CONOIL PLC
vi. NIGER INSURANCE PLC
vii. PREMIER PAINTS PLC
viii. RESORT SAVINGS & LOANS
ix. SMART PRODUCTS NIGERIA PLC
x. SOVEREIGN TRUST INSURANCE PLC
xi. UNION DIAGNOSTIC & CLINICAL SERVICES PLC.
The companies, the NSE noted, have violated Rule 1.1.4, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules), which requires them to file their audited financial statements “with The Exchange not later than ninety (90) calendar days after the relevant year end.”
Also, Rule 1.1.4 requires that the results 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 on the company’s website, with the web address disclosed in the newspaper publications.
“An electronic copy of the publication shall be filed with The Exchange on the same day as the publication,” in the statement by Godstime Iwenekhai, for the NSE’s Head, Listings Regulation Department.
Consequently, besides placing the appropriate Compliance Status Indicator (CSI) beside names of the defaulting companies on its trading system as well as ticker tape, and pursuant to the provisions of Rule 2.2.1 of the Rules, the NSE said it has issued a First Deficiency Filing Notices to the companies notifying them “of their infraction, and to grant them three days to provide information to the public through a press release.”
Such information would include providing detailed reasons for the delay; and “the anticipated filing date, or state that the company is unable to indicate an anticipated filing date, and reasons for such inability to indicate the anticipated filing date.”
Since the companies’ continued breach of Rule 2.2.1 of the Rules, and in line with the requirements of Rule 2.2.2, The Exchange urged the investing public to trade cautiously on their securities in “the absence of up to date financial information on them.”
The NSE assured that it will continue to engage with the defaulting companies and may take additional steps such as sending them a “Second Filing Deficiency Notification” within two business days after 29 June 2017; and suspending trading in their securities, should they fail to comply, and file their AFS within the ninety-day cure period stipulated by Rule 2.1.1 of the Rules, i.e. 29 June 2017.
