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NGX suspends trading in Unity Bank, Guinea Insurance and six other firms over 2023 financial filings

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By Samuel Bankole

NGX Regulation, the regulatory arm of the Nigerian Exchange Group (NGX), has suspended trading in the shares of eight companies due to their failure to file relevant financial accounts for 2023.

The suspension took immediate effect, as announced in a market bulletin on Monday by the Head of the Issuer Regulation Department, Godstime Iwenekhai.

The affected companies are Unity Bank, C&I Leasing Plc, Guinea Insurance, Lasaco Assurance, Mutual Benefits Assurance, NPF Microfinance Bank, Regency Alliance Insurance, and Secure Electronic Technology Plc.

Iwenekhai stated, “Trading in the shares of the eight companies below has been suspended from the facilities of Nigerian Exchange Limited (NGX or The Exchange) effective today, Monday, 8 July 2024, for not filing their Audited Financial Statements for the year ended 31 December 2023.”

According to post-listing requirements, companies on the NGX are mandated to submit their financial accounts and other relevant documents within a specified time frame.

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NGX RegCo’s actions are in accordance with Rule 3.1 on the Filing of Accounts and Treatment of Default Filing (Default Filing Rules). This rule stipulates that if an issuer fails to file the relevant accounts by the end of the Cure Period, the Exchange will:

  1. Send the issuer a Second Filing Deficiency Notification within two business days after the Cure Period ends.
  2. Suspend trading in the issuer’s securities.
  3. Notify the Securities and Exchange Commission and the market within 24 hours of the suspension.

The suspension will be lifted once the affected companies comply with the filing rules. Notably, insurance companies have faced delays in filing their 2023 annual reports due to the adoption of IFRS 17 standards.

IFRS 17 requires companies to recognize profits as they deliver insurance services rather than when they receive premiums and to provide information about expected future profits from insurance contracts.

The NGX Regulation’s stringent measures underscore the importance of compliance with financial reporting standards to ensure market transparency and protect investor interests.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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