Authorities at the Nigerian Stock Exchange (NSE) have 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 include 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 in a circular obtained by The Nation.
The Exchange warned that it may suspend trading on the shares of the companies if they fail to comply with extant rules within the specified period.
According to the Exchange, the deadline for submission of the unaudited financial statement of the companies became due on June 29, 2020, being the extended due date as granted by the Exchange.
By virtue of non-filing of the unaudited report by the due date, the companies violated extant rules at the NSE which provide that every company shall file its unaudited quarterly accounts not later than 30 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication.
The rules also required that an electronic copy of the interim financial publication shall be filed with the Exchange on the same day as the newspaper publication.
Head, Listings Regulation Department, Nigerian Stock Exchange (NSE), Godstime Iwenekhai stated that the NSE had issued deficiency filing notice to the companies notifying them of their violations and mandating them to make public disclosure regarding the violation, the reasons for the violation and possible date for publication of the outstanding financial statement.
According to the Exchange, the defaulting companies failed to comply with the directives in the deficiency filing notice.
While the Exchange will continue to engage with the companies on the need to comply with extant rules, it warned that it may take additional punitive steps should they fail to comply and file their unaudited financial statements within the 90-day cure period, which ends by September 27, 2020.