The Nigerian Stock Exchange (NSE) has suspended trading in six companies over their inability to comply with extant corporate governance rules and best practices that mandate them to submit their financial statements within a specified period.
The suspended companies include: FTN Cocoa Processors Plc; Medview Airline Plc; Niger Insurance Plc; R.T. Briscoe (Nigeria) Plc; Union Dicon Salt Plc and Capital Oil Plc.
The NSE suspended trading on the shares of the companies with effect from Tuesday September 1, 2020 over their failure to “file their audited financial statement for the year ended December 31, 2019”.
Listing and regulatory rules at the capital market require all quoted companies to submit their annual audited report and financial statement not later than 90 days after the end of the financial year.
More than 85 per cent of quoted companies, including all banks, insurers, major manufacturers, oil and gas companies and conglomerates use the Gregorian calendar year ending December 31 as their business year.
Thus, the deadline for the submission was Monday, March 30, 2020.
However, with the disruptions caused by the COVID-19 pandemic, the NSE and Securities and Exchange Commission (SEC) extended the deadline for submission of annual report and accounts by 60 days to May 29, 2020.
The NSE stated the companies were suspended after the expiration of the “grace” period and many notifications demanding the submission of the financial statements.
“In accordance with the rules set forth above, the suspension of trading in the shares of the above listed companies will only be lifted upon the submission of the relevant accounts and provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange,” NSE stated.