The Nigerian Stock Exchange (NSE), has lifted African Alliance Insurance’s suspension to trade its shares. The underwriting firm was suspended, following its failure to adhere to listing rules.
African Alliance Insurance was among the eight companies suspended from trading their shares at the NSE on July 5, 2018, for failing to comply with Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the NSE, which required them to file their financial statements within a speculated timeframe.
Having now submitted its audited financial statements, the NSE has announced the lifting of the suspension on African Alliance Insurance, allowing the insurer to begin trading its securities at the local stock exchange.
According to a statement issued by the management of the NSE, the lifting of the embargo became effect from Tuesday, January 8, 2019.
“In view of the submission of the company’s accounts and pursuant to Rule 3.3 of the Default Filing Rules, dealing members are hereby notified that the suspension placed in the trading of the company’s shares was lifted on January 8, 2019,” the notice said.
Nairametrics had reported the suspended companies at the time. The suspended companies include -Cornerstone Insurance Plc, R. T. Briscoe Plc, Royal Exchange Plc, STACO Insurance Plc, Standard Alliance Insurance Plc, Universal Insurance Company Plc, and Veritas Kapital Assurance Plc.
The significance of the suspension
Full suspension means there will be no trading in the company’s shares, and their share prices will be frozen.
Some of the suspended firms are perennial offenders. African Alliance Insurance has, however, been suspended several times in the last few years.
An X compliance report released in April 2018, revealed the company was fined N46.1 million in 2017. The company in July 2013 was among several firms fined by the NSE for late submission of their audited results.
In July 2017, the company once more fell under the NSE hammer as it was suspended for non-submission of its audited results.
About the firm
African Alliance Insurance is an investment banking group operating in Africa. The firm provides local and on-the-ground investment banking services across the African continent.