The Nigerian Stock Exchange (NSE) has announced suspension on trading of seven Insurance companies and one other company over nondisclosure of audited result and accounts.
The seven insurance companies are Cornerstone Insurance Plc, Royal Insurance Plc, African Alliance Insurance Plc and STACO Insurance Plc, Standard Alliance Insurance Plc, Universal Insurance Company Plc and Veritas Kapital Assurance Plc.
The other company suspended by NSE was R. T. Briscoe Plc.
The Exchange in a statement on Friday stated that a full suspension was placed on the companies on July 5, 2018 and notification has been sent to the Securities and Exchange Commission (SEC) and the Market within 24 hours.
According to NSE, “Dealing members are hereby notified that pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing Rules”), which provides that; “If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will: (a) Send to the Issuer a “Second Filing Deficiency Notification” within two business days after the end of the Cure Period; (b) Suspend trading in the Issuer’s securities; and (c) Notify the Securities and Exchange Commission (SEC) and the Market within 24 hours of the suspension”, trading in the shares of the companies.”
The Exchange added that “there will be no trading of these stocks and their share price will be frozen.”
The Exchange further added that, “In accordance with the rules set forth above, the suspension 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.”