The Nigerian Stock Exchange (NSE) on Tuesday said it might suspend trading in the securities of 11 companies if they fail to file their audited financial statements (AFS) for the year ended December 31, 2016 within 90 days.
The companies are: A.G Leventis Nigeria Plc; African Alliance Insurance Plc; Austin Laz & Company Plc; Capital Hotel Plc, Conoil Plc; Niger Insurance Plc, Premier Paints Plc, Resort Savings & Loans Plc, Smart Products Nigeria Plc; Sovereign trust Insurance Plc and Union Diagnostic & Clinical Services Plc.
According to the NSE, the companies have missed the deadline to file their AFS for 2016, that was due on Friday, 31 March 2017.
“As the companies failed to file their AFS by the due date, the companies have violated Rule 1.1.4, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) , which requires listed companies to file their AFS “with the exchange not later than 90 calendar days after the relevant year end.
Further, Rule 1.1.4 requires that the AFS must be “published in at least two national daily newspapers not later than 21 calendar days before the date of the annual general meeting, and posted on the company’s website, with the web address disclosed in the newspaper publications. An electronic copy of the publication shall be filed with The Exchange on the same day as the publication,” the exchange said.
It explained that in line with its zero tolerance policy on infractions, it has notified the public of this rule violation by the companies through its X-Compliance report.
Additionally, the NSE said the appropriate compliance status indicator (CSI) has been placed beside the names of the defaulting companies on the exchange’s trading system and ticker tape.
“Moreover, pursuant to the provisions of Rule 2.2.1 of the Rules, the Exchange has issued a First Deficiency Filing Notice (FDFN) to the companies. The purpose of the FDFN was to notify the companies of their infraction, and to grant them three days to provide the certain information to the public through the medium of a press release.
According to the NSE, it would continue to engage with these companies and may file a second FDN within two business days after June 29, 2017 or suspend trading in the companies’ securities should they fail to comply, and file their AFS within the 90 days.
