Home Business News Companies Portfolio watch; NSE just fined these 38 companies!

Portfolio watch; NSE just fined these 38 companies!

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The Nigerian Stock Exchange (NSE) has fined about 38 companies the sum of ₦433 million for their failure to adhere to the minimum listing standards as regards the timely disclosure of their audited financial report for the year ended 2017.

According to the NSE X-Compliance Report released last week, the affected companies have either Missed Regulatory Fillings (MRF) or are Awaiting Regulatory Approval (AWR) of their primary regulators.

The biggest offenders in 2017 include:

  1. Ekocorp Plc: ₦75,600,000.00
  2. Universal Insurance Plc: ₦51,400,000.00
  3. Thomas Wyatt Plc: ₦46,800,000.00
  4. African Alliance Plc: ₦46,100,000.00 and
  5. Great Nigeria Insurance Plc: ₦24,800,000.00

Meanwhile, so far in 2018, the Nigerian Stock Exchange has also sanctioned a total of six [6] quoted companies for their failure to submit their audited interim financial accounts as at when due. The total sum of ₦37.6m was imposed on them as fine.

The following are the list of offending companies alongside their fines:

  1. Vitafoam Nigeria Plc: ₦800,000.00
  2. Academy Press Plc: ₦35,000,000.00
  3. International Breweries Plc: ₦100,000.00
  4. FCMB Group Plc: ₦100,000.00
  5. Abbey Mortgage Bank Plc: ₦800,000.00
  6. Wema Bank Plc: ₦800,000.00

 

What happens next ? 

In the event of further delay in submitting their results, the NSE could decide to place the stocks on full suspension, like it did last year. This means there would be no trading of the shares of the affected companies.

Listed companies  are expected to comply with certain rules and regulations, including adherence to high disclosure standards which are prescribed in Appendix 111 of the Listing Rules.

Companies are expected to submit their financial year-end result latest by 90 days after the end of each year. Quarterly results are also expected to be submitted at most 60 days after the end of each quarter

 

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