NSE suspends trading on 6 firms over late submission of reports
The Nigerian Stock Exchange (NSE) on Tuesday suspended six companies listed on its board over their failure to submit their statement of accounts and financial reports within the regulatory stipulated period.
“Suspended trading on the shares of the companies with effect from Tuesday, September 1, 2020, over their failure to file their audited financial statement for the year ended December 31, 2019,” NSE said in a statement.
The companies suspended include FTN Cocoa Processors Plc, Medview Airline Plc, Niger Insurance Plc, R.T. Briscoe (Nigeria) Plc, Union Dicon Salt Plc, and Capital Oil Plc.
Regulatory rules at the local bourse require all quoted companies to submit their annual audited report and financial statement not later than 90 days after the end of the financial year.
More than 85 percent of quoted companies including all banks, insurers, major manufacturers, oil and gas companies, and conglomerates use the Gregorian calendar year ending December 31 as their business year.
Thus, the deadline for the submission was Monday, March 30, 2020.
The disruptions caused by the COVID-19 pandemic had led both the NSE and Securities and Exchange Commission (SEC) to extend the deadline for submission of annual reports and accounts by 60 days, till May 29, 2020.
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The NSE stated that the companies were suspended after the expiration of the “grace” period and many notifications demanding the submission of the financial statements.
“In accordance with the rules set forth above, the suspension of trading in the shares 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,” NSE stated.
The NSE had in July 2020 warned investors to be wary when dealing with shares of 13 companies after they failed to meet regulatory deadlines for the submission of their financial statements without any explanation.
The 13 companies included Aso Savings and Loans Plc, Deap Capital Management & Trust Plc, DN Tyre & Rubber Plc, FTN Cocoa Processors Plc, Goldlink Insurance Plc, International Energy Insurance Plc, Medview Airline Plc, Resort Savings & Loans Plc, Staco Insurance Plc, Standard Alliance Insurance Plc, UNIC Diversified Holdings Plc, Union Dicon Salt Plc and Union Homes Savings and Loans Plc.
“Investors are advised to trade with caution on the securities of these companies in the absence of up to date financial information on them,” the NSE stated.