Chinwendu Obienyi
For failing to file their audited and interim financial statements after the regulatory due date, the Nigerian Stock Exchange (NSE) has fined eight quoted companies to the tune of N13.7 million.
This was even as Daily Sun investigations revealed that the Exchange raked in N10.33 million from four other companies which failed to disclose material information to the investing community and publish the information in their annual reports in two years.
According to the X-Compliance Report, the NSE applied sanctions in accordance with the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the Exchange (Issuers’ Rules).
The X-Compliance Report, which is a transparency initiative of the NSE, designed to maintain market integrity and protect investors by providing compliance related information on all listed companies, revealed that Greif Nigeria Plc was fined N500,000, Deap Management was fined N3.8 million and N1.7 million for the late filing of its 2019 full year audited result as well as its Q2 2020 result, while Thomas Wyatt Nigeria Plc which failed to file its third-quarter result at the expected time was fined N700,000.
Other companies axed for non compliance include Ellah Lakes Plc fined N200,000 fine, African Alliance N3.2 million fine, Universal Insurance which paid N3.2 million fine while Conoil Plc is expected to pay a N400,000 fine, to raise the total fines to about N13.7 million in 2020.
The report further revealed that Access Bank, Diamond Bank, First Aluminium as well as Union Bank were fined for failing to disclose material information in their books to the investing community.
“Every listed company is required to provide the NSE with timely information to enable it to efficiently perform its function of maintaining an orderly market. In accordance with the provisions of Appendix III: General Undertaking (Equities), Rulebook of the Exchange, 2015 (Issuers’ Rules) and the Exchange’s Circular No. NSE/LARD/LRD/CIR3/17/05/12 on Publication of Announcements or Press Releases via the Issuers’ Portal, listed companies are required to obtain prior written approval from the Exchange before publications that affect shareholders’ interest are made in the media or via the Issuers’ Portal”, the report stated.