Exchange cautions investors on companies’ securities
The Nigerian Stock Exchange (NSE) has announced failure by 11 listed firms to meet up with the deadline of filing their Audited Financial Statements (AFS) for the year ended December 31, 2016.
The firms include: A.G Leventis Nigeria Plc; African company Plc; Capital Hotel Plc; Conoil Plc; Niger insurance Plc; Premier Paints Plc; Resort Savings & Loans. Others are Smart Products Nigeria Plc; Sovereign Trust Insurance Plc; Alliance Insurance Plc; Austin Laz and Union Diagnostic & Clinical Services Plc.
Accordingly, investors have been warned to trade with caution on the securities of these companies in light of the absence of up to date financial information on them, given that such information are required to make good investment decisions.
However, none of the companies mentioned was willing to talk with the Guardian on the subject when contacted.
The NSE in a statement, said the above listed companies’ AFS became due on Friday, March 31st, noting that by failing 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).”
The rule requires listed companies to file their AFS with the Exchange not later than 90 calendar days after the relevant year ended, and may face sanctions subsequently.
“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. In line with its zero tolerance policy on infractions, the Exchange has notified the public of this rule violation by the aforelisted companies through its X-Compliance Report, which may be found on the Exchange’s website.
“Additionally, 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 FDF was to notify the companies of their infraction, and to grant them three days to provide the following information to the public through the medium of a press release. That the relevant AFS had not been filed by the due date; a detailed explanation of the reason(s) for the delay; and the anticipated filing date, or state that the company is unable to indicate an anticipated filing date, and reasons for such inability to indicate the anticipated filing date.
“The companies failed to comply with The Exchange’s directives set forth in the FDFN within the stipulated timeline. In light of the companies’ continued breach of Rule 2.2.1 of the Rules, and in line with the requirements of Rule 2.2.2.”
The NSE further notified the investing public that the Exchange will continue to engage with these companies, and may take additional steps of sending them a second filing deficiency notification within two business days after June 29th. Thereafter, it may suspend trading in the companies’ securities should they fail to comply, and file their AFS within the 99 cure period stipulated by Rule 2.1.1 of the Rules, i.e. June 29th.