The Nigerian Stock Exchange (NSE) has removed NEM Insurance Plc, Continental Reinsurance Plc and Diamond Bank Plc from the NSE Corporate Governance Index(NSE CGI).
The NSE CGI was launched during the inaugural Corporate Governance Rating System (CGRS) certification ceremony in February 2018.
The NSE CGI was introduced to track the performance of the 35 Corporate Governance Rating System (CGRS) rated companies using their market capitalisation, free float and corporate governance rating scores.
However, the exchange said yesterday that its Index Governance Committee resolved to remove NEM Insurance from the NSE CGI following the suspension of the CGRS rating of the company by the Steering Board of the CGRS on Monday, 19 November 2018.
The NSE added that in view of the recent governance issues with Diamond Bank, the Index Committee has decided to remove the bank from the NSE CGI.
“The Index Committee also decided to remove Continental Reinsurance Plc from the NSE CGI following the company’s application to the exchange to delist from the Daily Official List of The Exchange,” the exchange said.
The NSE had explained that index would be reviewed on a bi-annual basis at which point other companies that have become CGRS rated in the interim may be added to the Index or companies that have had their ratings suspended or withdrawn may be removed.
The exchange said the index was expected to be an important tool for investors keen on investing in well governed companies as well as corporates eager to distinguish themselves on the ground of governance.
Specifically, the Chief Executive Officer of the NSE, Oscar Onyema, said: “The launch of the CGI is an important milestone to strengthening listed companies by tracking their corporate governance practices. This index will increase transparency in our market and provide investors additional data points upon which to make sound decisions. I congratulate the companies that have successfully completed the process and I expect that they will be more positively looked at whilst trying to raise and access capital within or outside of our jurisdiction.”
The CGI was launched at the certification ceremony for 35 companies and 437 directors that made it over the 70 per cent threshold for the CGRS process.
Speaking on the certification, Co-Founder and Chief Executive Officer, Convention on Business Integrity (CBi), Soji Apampa, said: “This is a triumph for collective action in the fight against corruption and unethical practices. I congratulate the companies and directors being honoured today and I urge them not to relent in their efforts to sustain the high level of corporate governance that has brought them thus far.”