The management of Nigeria Exchange Limited (NGX) has placed trading suspension on Niger Insurance Plc, Royal Exchange Plc, African Alliance Insurance Plc, and The Tourist Company of Nigeria Plc effective from July 2, 2021.
According to the Exchange notification to market stakeholders, these four companies failed to file their Audited Financial Statements for the year ended December 31, 2020.
According to NGX, the companies suspended fails to file the relevant accounts by the expiration of the cure period, forcing the management to send to the company a “Second Filing Deficiency Notification” within two business days after the end of the cure period.
Analysts on the capital market have expressed that these companies have performed woefully to filing of result and accounts amid weak corporate governance, economy related factors and inconsistent in government business policies.
The Exchange noted that it suspend trading in the company’s securities; and notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.
Exchange stated that, “trading license holders and the investing public are hereby notified that pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, (Default Filing Rules), which provides that, If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange sends to the Issuer a “Second Filing Deficiency Notification” within two business days after the end of the Cure Period; suspend trading in the Issuer’s securities; and notify the SEC and the Market within 24 hours of the suspension.
“In accordance with the Default Filing Rules set forth above, the suspension of trading in the shares of the above mentioned companies will only be lifted upon the submission of the relevant accounts, provided NGX Regulation Limited is satisfied that the accounts comply with all applicable rules of the Exchange.”
For defaulting post-listing requirement, the NGX had suspended 12 companies between 2017 and 2021.
The breakdown revealed that the NGX in 2017 suspended Aso Savings & Loans Plc and Union Homes Savings & Loans for not submitting December 31, 2017 results.
Our correspondent gathered that in 2018, Multi-Trex Integrated Foods Plc , International Energy Insurance Plc, DN Tyre & Rubber Plc and STACO Insurance Plc were suspended for defaulting mostly December 31, 2021 result and accounts.
Meanwhile, three companies in 2019, Goldlink Insurance Plc, Resort Saving & Loans Plc and Standard Alliance Insurance Plc failed to submit December 31, 2019 results.
Medview Airline Plc and Capital Oil also failed in submitting December 31, 2020, while in 2021, The NGX has suspended only one company, Thomas Wyatt Nigeria.