NSE slams Unity Bank, Diamond Bank, Fidelity Bank, others with N.1billion fine

Eight banks in the country have been fined a total of N102.7 million by the The Nigerian Stock Exchange for the failure to file their financial statements at the regulatory date.

The action is coming on the heels of the launching of new sanction regime on January1, 2018, which makes companies liable to pay fines ranging from N100, 000 to more than N100m as penalties for delay in the submission of their corporate earnings reports.

The NSE requires quoted companies to file their unaudited quarterly accounts not later than 30 calendar days after the relevant quarter. The regulation also mandates thecompaniess to publish within five business days after the date of filing in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication.

Data obtained from the NSE revealed that the total amount of fines due this year was N341.6m, while the carried forward amount of last year was N424.9m, bringing the total amount due from fines to N766.5m.

According vto NSE, it applied sanctions in accordance with the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules).

Unity Bank Plc tops the charts, owing the highest amount of N80.2m, as it was at different times this year, fined N200,000; N9.8m, N29m, and N40.7m.

It, however, had an outstanding fine of N500,000 from 2017, which it was sanctioned for filing its audited 2016 financial statement late.

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Trading in the shares of the bank was suspended on November 1 but was lifted on November 2, 2018, after the bank submitted its financial statements.

Diamond Bank Plc followed as the second highly sanctioned bank with a N7.3m fine. The bank had an outstanding fine of N2.4m from 2017, added to the N3.8m and N1.1m fines it received at different times this year.

Fidelity Bank Plc follows closely with a N6.2m fine, ahead of Union Bank with N4.7m for late filing of its audited 2017 and first quarter 2018 financial statements.

FBN Holdings Plc, Sterling Bank Plc, Wema Bank and First City Monument Bank have N2.1m, N1.3m, N800,000, and N100,000 respectively for late filing of their audited 2017 financial statements.

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