For failing to adhere to certain rules, The Nigerian Stock Exchange Has suspended 11 companies (including 7 insurance companies) from trading their shares on The Exchange. And things might stay that way for a while.
The first day of the month of July saw trading on the Nigerian Stock Exchange get off to a negative start with crucial market indices dipping significantly. And that may have set the tone for the bombshell that was to be dropped the very next day when The Exchange moved to suspend 11 companies from trading in shares having flouted regulations.
The list of eleven which included seven insurance companies and four others appear to have been found wanting in certain respects and The Exchange moved to wield the big stick.
Among the embattled companies are Conoil Plc, Guinea Insurance Plc, Lasaco Assurance Plc, Niger Insurance Plc, Goldlink Insurance Plc, FTN Cocoa Processors Plc, Universal Insurance Plc, R.T. Briscoe (Nigeria) Plc, Royal Exchange Plc, and Resort Savings & Loans Plc.
Several indications have it that the suspension of the companies from trading in shares on The Exchange came as a result of failure on their part to adhere to The Exchange’s Rules for Filing of Accounts and Treatment of Default Filing.
It appears the companies had failed to file the relevant accounts before the expiration of the cure period and the suspension of the trading of their securities was the proscribed punishment for such a fault. And this was unavoidable given that the companies failed to respond to a second filing deficiency notification, hence, the suspension.
As it stands, the shares of the blacklisted companies will no longer be traded on The Exchange until they comply by submitting the relevant accounts and things should go back to normal provided The Exchange is satisfied that the accounts comply with all of its rules, and that’s according to Godstime Iwenekhai, Head, Listings Regulation Department at NSE, who made this known in a statement issued on Tuesday.
Featured Image Courtesy: von.gov.ng
Hi! Here’s a little something for you. In the first edition of The African Podcast by WeeTracker, get access to the formula behind ‘Building a $ 100 Mn company (twice) in Africa’ with the co-founder of Andela & Flutterwave – Iyinoluwa Aboyeji. The exclusive podcast goes live soon, Subscribe here to listen to it.
9500+ subscribers are getting our free newsletter on African technology, startups and innovators bi-weekly.
Made with ❤ in Africa