| As part of its investor protection strategy, the management of The Nigerian Stock Exchange (NSE) has fined 40 companies with N1billion for failure to release their results as at when due.
The companies’ breach of The Exchange’s Post Listing Requirements can create artificial market if pricing of their shares does not reflect corporate performance.
Affected companies, according to The NSE’s X-Compliance report obtained by The Kernel Wednesday include Conoil Plc; Deap Capital Management & Trust, a Mortgage banker; R.T. Briscoe Plc; FTN Cocoa Processors Plc; eTransact International; Royal Exchange Plc and 35 others over N1 billion for their failure to file their financial statements with the bourse.
In the report, the NSE fined Deap Capital the sum of N5.5 million for default in the filing of its 2019 audited account while R.T.Briscoe was also fined about N53.4 million over its failure to turn in its audited report since 2018 to the Exchange.
Conoil Plc was fined N800,000, FTN Cocoa Processors was fined N50.3 million, Juli Plc, Omatek Ventures, Royal Insurance, Union Dicon, and Niger Insurance were slapped with N151.2 million, N537.2 million, N22.3 million, N27.5 million, and N84.2 million fines respectively among others for similar defaults.
Some of the erring companies have consistently failed to file their audited financial statements since 2017.
For instance, NGC, DN Tyre, Union Homes Savings & Loans, and Aso Savings & Loans have not sent their 2014 – 2019 audited results to the exchange. While Omatek, Evans, Unic Diversified, Juli, Anino, Multi-Trex failed to file their results since 2015. Roads, Staco Insurance, Goldlink, FTN Cocoa, Capital Oil, Guinea Insurance, Resort Savings, Standard Alliance Insurance, International Energy Insurance fall in the category of firms that have not submitted their 2017 and 2018 reports, respectively.
The regulatory report flagged the companies with warning codes that indicated various degrees of corporate governance weaknesses, susceptibility to illiquidity, and price manipulation due to inadequate price discovery.
Already, some of the companies’ stocks were also on the delisting watchlist of the NSE.
The X-Compliance Report is a transparency initiative of the Nigerian Stock Exchange (The Exchange), which is designed to maintain market integrity and protect investors by providing compliance-related information on all listed companies.
Read Time:1 Minute, 54 Second
Want create site? Find Free WordPress Themes and plugins.
Did you find apk for android? You can find new Free Android Games and apps.