The management of the Nigerian Stock Exchange (NSE), on Tuesday, announced the immediate suspension of 11 quoted companies, including nine insurers for failing to meet the post-listing requirement of the bourse, particularly, failing to present their financials within the period expected.
The companies that fell below the NSE’s listing standard are Conoil Plc, a petroleum products market giant owned by billionaire Dr. Mike Adenuga, who is also the promoter of telecommunications giant- Globacom.
Ibadan, Oyo State-based FTN Cocoa Processors Plc, Resort Savings & Loans Plc, and R.T. Briscoe (Nigeria) Plc were the only other non-underwriters on the list released by the NSE.
Others included: Goldlink Insurance Plc, Guinea Insurance Plc, Lasaco Assurance Plc, Niger Insurance Plc, Royal Exchange Plc, Standard Alliance Insurance Plc, and Universal Insurance Plc.
The suspension the NSE explained, is pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (Default Filing Rules).
The rule provides that where an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will: send a “Second Filing Deficiency Notification” within two business days after the end of the Cure Period;
Thereafter, trading in such company’s securities is suspended, while the Securities and Exchange Commission (SEC) and the market are notified within 24 hours of the action.
According to the NSE, “in accordance with the rules set forth above, the suspension of the above-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.”