For failing to submit their audited financial statement on time in line with post-listing requirements, the Nigerian Stock Exchange (NSE) has so far slammed fines to amounting to N431 billion on 37 quoted companies.
According to the Exchange through its X-Compliance report, the action against the 37 firms, which failed to submit their 2017 and 2018 financial statements on time, was in accordance with the provision of Section 14 of Appendix 111 of the Listing Rules of the Exchange.
Analysis done by Daily Sun revealed that some of these companies sanctioned did not meet the regulatory requirements ranging from full year ended December 31, 2017 and full year 2018.
Some of the sanctioned companies include Abbey Mortgage Bank Plc, Academy Press Plc,Conoil Plc, Goldlink Insurance Plc, International Breweries Plc, Mutual Benefit Assurance Plc, NPF Microfinance Bank Plc, AG Leventis Plc, PZ Cussons Nigeria Plc, Meyer Plc, Presco Plc, Royal Exchange Plc, Standard Alliance Insurance Plc amongst others.
The NSE further said that the initiative was designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies. The report thus stated: “Companies that are listed on the Exchange are required to adhere to high disclosure standards, which are prescribed in Appendix 111 of the Listing Rules. Financial information, which is periodic disclosure and on-going material events disclosure should be released to the Exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market.”
It is safe to say that the NSE in an effort to achieve a world class capital market had reiterated its commitment to maintain zero tolerance posture on dealing member firms and quoted companies on violations of rules and regulations. Some market operators, said the action came as part of effort by the Exchange’s to shift gears to drive innovations centred on increasing global visibility for the Nigerian capital market in the current year.