NSE DG, Oscar Onyema
Some shareholders have advised the Nigerian Stock Exchange (NSE) against the planned delisting of nine companies, saying it would further dampen investor confidence in the equities market.
According to them, delisting firms due to their violation of post-listing requirements have not yield any positive result to both investors and regulators.
The companies expected to be delisted for non-compliance and performance include: Capital Oil Plc, Union Dicon Salt Plc, Lennards Nigeria Plc, West Africa Glass Industry Plc, Nigerian Wire Industries Plc, Aluminum Manufacturing Company of Nigeria Plc, Rokana Industries Plc, Hallmark Paper Products Plc, Nigerian Wire Industries Plc and Udeofson Garment Factory Nigeria Plc.
Trading in these shares had earlier been suspended since the beginning of this month.
However, the President of Nigeria Shareholders Solidarity Association (NSSA), Chief Timothy Adesiyan, said the management of the exchange should think twice and explore ways they could assist the companies to recover in order to comply with listing requirements.
“If the management of the NSE means well for the market, they should not allow the companies to just delist from the exchange. They should be made to give investors fair value for their investments. Once they delist them, there would be asset stripping and the shareholders would be biggest casualties,” Adesiyan said.
In his reaction, the General Secretary, Independent Shareholders Association of Nigeria (ISAN), Mr. Adebayo Adeleke, said delisting had never been the best option and strategy to protect investors’ interest and encourage more patronage for the market.
“Is delisting the best option and strategy? Has it yielded positive results? Has ever helped Securities and Exchange Commission in protecting investors’ interest?” he asked.
To Mr. Oderinde Taiwo of Proactive Shareholders Association of Nigeria(PROSAN), the action is tantamount to destroying the market.
“The NSE is poised to destroy the market through its obnoxious policies. Our group is set to sue NSE on this wicked agenda. We are calling on SEC to call the exchange to order,” Taiwo said.
The management of the
Also, the Chief Executive Officer of the NSE, Mr. Oscar Onyema, had explained that the NSE adopted a proactive approach by calling on companies to understand the challenges they were going through that preventing them from complying with the post-listing requirements.
According to him, the motive of notifying the companies was to give them support that would make them comply with rules and to also allow investors know the companies that are struggling.