The Nigerian Stock Exchange (NSE) has debarred six listed companies from trading for not filing their audited financial statements for the year ended December 31, 2019.
These companies are FTN Cocoa Processors Plc, Medview Airline Plc, Niger Insurance Plc, R.T. Briscoe (Nigeria) Plc, Union Dicon Salt Plc and Capital Oil Plc.
The NSE said the suspension is in line with rule 3.1 of the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the exchange also known as the issuers’ rules or default filing rules.
The rule provides that, “If an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: send to the issuer a second filing deficiency notification within two business days after the end of the cure period; suspend trading in the issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.”
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In a notice to stockbrokers on Tuesday, NSE said the suspension is effective Tuesday, September 1, 2020.
NSE regulations demand that all listed companies submit their annual audited report and financial statement not later than 90 days after the end of the financial year.
The deadline was extended by 60 days till May 29 to accommodate disruptions by the COVID-19 pandemic.
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The NSE said the firms were suspended following the expiration of the “grace” period and several notifications requesting the submission of the financial statements.
The bourse said the suspension will be lifted when the accounts are submitted provided “the exchange is satisfied that the accounts comply with all applicable rules of the exchange”.
In July, NSE warned investors to be careful when dealing with the shares of 13 companies after their failure to meet regulatory deadlines for the submission of their financial statements without offering reasons for doing so.
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