NSE Warns Investors to be Cautious of Conoil, 10 Other Firms

April 11, 2017
Conoil Plc

NSE Warns Investors to be Cautious of Conoil, 10 Other Firms

By Modupe Gbadeyanka

The Nigerian Stock Exchange (NSE) has issued a warning to investors to “trade with caution on the securities” of ConOil Plc and 10 other companies listed on its platform.

This followed failure of the quoted firms to meet the Friday, March 31, 2017 deadline to file their Audited Financial Statements (AFS) for the year ended December 31, 2016.

The defaulting companies, according to the NSE, are A.G Leventis Nigeria Plc, African Alliance Insurance Plc, Austin Laz & Company Plc, Capital Hotel Plc, Conoil Plc, Niger Insurance Plc, Premier Paints Plc, Resort Savings & Loans, Smart Products Nigeria Plc, Sovereign Trust Insurance Plc, and Union Diagnostic & Clinical Services Plc.

“The above listed companies’ AFS became due on Friday, 31 March 2017. As the companies failed to file their AFS by the due date, the companies have violated Rule 1.1.4, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (the Rules), which requires listed companies to file their AFS ‘with The Exchange not later than ninety (90) calendar days after the relevant year end.’

“Further, Rule 1.1.4 requires that the AFS must be “published in at least two (2) national daily newspapers not later than twenty one (21) calendar days before the date of the Annual General Meeting, and posted on the company’s website, with the web address disclosed in the newspaper publications.

“An electronic copy of the publication shall be filed with The Exchange on the same day as the publication,” the NSE said.

The NSE explained that it decided to make this public notification “in line with its Zero Tolerance Policy on Infractions” through its “X-Compliance Report” available on http://www.nse.com.ng/Issuers-section/corporate-disclosures/x-compliancereport.

Also, the stock exchange noted that the appropriate Compliance Status Indicator (CSI) has been placed beside the names of the defaulting companies on its trading system and ticker tape.

A statement signed by the Head of Listings Regulation Department of the NSE, Mr Godstime Iwenekhai, said pursuant to the provisions of Rule 2.2.1 of the Rules, it has issued a First Deficiency

Filing Notice (FDFN) to the defaulting companies.

Mr Iwenekhai explained that the purpose of the FDFN is to notify the companies of their infraction, and to grant them three days to provide the following information to the public through the medium of a press release: That the relevant AFS had not been filed by the due date; A detailed explanation of the reason(s) for the delay; and The anticipated filing date, or state that the company is unable to indicate an anticipated filing date, and reasons for such inability to indicate the anticipated filing date.

“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 AFS within the ninety-day cure period stipulated by Rule 2.1.1 of the Rules, i.e. June 29, 2017 send to the aforelisted companies a “Second Filing Deficiency Notification” within two business days after 29 June 2017; and suspend trading in the companies’ securities.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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