Business
Stock Exchange alerts investors to ‘trade with caution’ on 11 companies
The Nigerian Stock Exchange (NSE) has alerted the investing public on the inability of 11 quoted companies to submit their annual reports within the stipulated period.
The 11 companies include AG Leventis Nigeria, African Alliance Insurance, Austin Laz & Company, Capital Hotel, Niger Insurance, Premier Paints, Resort Savings & Loans, Smart Products Nigeria, Sovereign Trust Insurance and Union Diagnostic & Clinical Services.
Extant rules at the NSE require companies to submit their full-year audited report and accounts not later than 90 days after the end of the year. Most quoted companies operate the Gregorian calendar as their business year, thus the deadline for the submission of the 2016 results was March 31, 2017.
The Exchange in a circular cautioned investors that the 11 companies have breached the rules and were not able to meet the deadline for the earnings submission.
Read also: Dangote Refinery, others to be listed on Stock Exchange
“Investors are advised to trade with caution on the securities of these companies in light of the absence of up to date financial information on them,” the Exchange stated.
The Exchange stated that it had issued a First Deficiency Filing Notice (FDFN) to the companies, to notify the companies of their infraction, and to grant them three days to provide information to the public but they were unable to meet the requirements.
“The investing public is further advised that the Exchange will continue to engage with these companies and may take the following additional steps should they fail to comply, and file their annual financial statement within the 90-day cure period stipulated by Rule 2.1.1 of the Rules, that is June 29, 2017,” the Exchange stated.
The Exchange warned that it may suspend trading in the companies’ securities if they fail to comply with extant rules.
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Agbor Chris
April 12, 2017 at 9:27 am
Why can’t these 11 companies be simply removed from market since they are not currently in line with the rules of the market?
Anita Kingsley
April 12, 2017 at 9:31 am
90-day duration is more than enough for any serious company that is really taking its business seriously. They have to exhaust all grace before they can be taken off market.
Animashaun Ayodeji
April 12, 2017 at 9:34 am
This is another issue facing Nigeria, we handle almost everything with levity, nothing is taken seriously in this country. These 11 companies know what they are supposed to do, yet they refused.
yanju omotodun
April 12, 2017 at 3:11 pm
Not that they don’t know what to do but there are measures restricting them as well.
seyi jelili
April 13, 2017 at 11:07 am
Has NSE forget that these companies have to make sure their fraudulent audit report has to be tampered with and well moderated before submission. So that’s why they delay in submission.