In a bid to stop the growing number of delisted public companies on the Stock exchange, the Securities and Exchange Commission (SEC) has disclosed that it has initiated moves to stop the worrisome trend and also encourage the listings by more multinational companies in the country.
The Nigerian capital market regulator noted that it had mandated its Capital Market Committee CMC to look into the real reasons for such development, adding that it would further meet with shareholder groups to determine the reasons for the de-listings.
Recall that the Nigerian Stock Exchange recently delisted two companies – Afrik Pharmaceuticals Plc and African Paints Nigeria Plc. Also in 2016, NSE delisted 15 firms were delisted from trading on the exchange.
The exchange also recently fined about 38 companies the sum of ₦433 million over their failure to adhere to the minimum listing standards as regards the timely disclosure of their annual reports.
SEC’s acting Director General, Mary Uduk, assured on the commitment of SEC to see an improved listing of multinational companies in Nigeria on the capital market, adding that the practice of de-listing by quoted companies was a threat to the growth of the market.
She lamented that some highly capitalized companies had delisted, thereby, affecting the growth of the market.
In her words:
“Increase in de-listing by public companies pose a threat to the market in view of the fact that quite a number of them are highly capitalized”
It is expected that Teleco giant MTN will list $5.2 billion IPO on the Nigerian Stock exchange later this year.
The Securities and Exchange Commission (SEC), Nigeria is the apex regulatory institution of the Nigerian capital market supervised by the Federal Ministry of Finance.
