The Nigerian Stock Exchange (NSE) has proposed two amendments to its dealing member Rule 7.4 and 7.5.
Under Rule 7.4, for example, dealing member or stockbroking firms, would like the listed companies; submit their audited annual financial statements, within 90 calendar days after their year-end.
The stockbroking firms must also present their quarterly financial statements within 30 calendar days of the end of the quarter and any other periodic report within the period stipulated by The Exchange.
All such financial statements, which “shall communicate the need for submission of any other periodic financial report to dealing members via its circular to the Market,” must “be prepared in accordance with the requirements of the International Financial Reporting Standards (IFRS) applicable to the period covered in such financial statement(s).”
While failure to submit quarterly returns on the due date shall attract a N5,000 penalty per day of default, and suspension of such Dealing Member from trading after the due date, non-submission of audited financial statements shall also attract N5,000 daily penalty, but for a maximum of four weeks.
Thereafter, the Dealing Member firm shall be suspended from trading.
Failure to submit any other periodic reports on the due date for submission shall equally attract a penalty in same sum for a maximum of four weeks, followed by suspension from trading forthwith
Where a Dealing Member is suspended from trading for any of the reasons above, the NSE added, “such suspension shall be lifted upon submission of the quarterly returns, or audited financial statements or other periodic reports.”
Dealing member firms may however apply for an extension of time for the submission of its quarterly returns, or audited annual financial statements, but such, with reasons given, shall be no later than two weeks before the due date.
The decision to grant such request “shall be entirely at the discretion of The Exchange and such extension shall in no event be longer than a period of four weeks from the due date for submission for quarterly returns, and eight weeks for audited financial statements.”
The dealing member which fails to submit such quarterly or audited statements at the expiration of the extended period granted shall be suspended from trading forthwith and such shall be lifted upon submission of the quarterly returns, or audited annual financial statements.
All penalties, according to the statement, are however, “subject to review without notice by Council and any change thereto shall be made public by way of a Circular.”