The Nigerian Exchange Regulation Limited (NGX RegCo) has suspended trading on nine companies listed in the stock market, a move that will negatively impact the investment of shareholders in the firms.
In a statement released on Friday, the affected firms are Niger Insurance Plc, Ardova, African Alliance Insurance Plc, Royal Exchange Plc, Ekocorp Plc, and C&I Leasing Plc.
Others are Mutual Benefits Assurance Plc, Coronation Insurance Plc, Premier Paints Plc. Trading on their shares was suspended indefinitely by the capital market authorities effective July 1, 2022.
According to the statement, the companies were sanctioned for failing to release their Audited Financial Statements for the year ended 31 December 2021, which has prevented shareholders and the rest of the stock market to access their financial performance for last year, which is often used to determine trading activities.
The suspension of trading on the nine companies will stall growth in investment held by shareholders in the firms, and could trigger a sell off upon return of trading activities on their shares.
The statement reads in part,, “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 (NGX RegCo) is satisfied that the accounts comply with all applicable rules of NGX.”
Meanwhile, the suspension spells more trouble for Niger Insurance shareholders, having saw the operational license of the firm revoked four days ago by the National Insurance Commission (NAICOM).
NAICOM had cancelled certificates of registration of Standard Alliance Insurance Plc, and Niger Insurance three months after Ripples Nigeria reported that the latter’s financial struggles might result into the firm losing its license.
The Insurance regulator appointed Sanya, Ogunkuade Esq in Abuja as the liquidator for Niger Insurance Plc.
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