By Aduragbemi Omiyale
The suspension placed on the trading in the shares of International Energy Insurance (IEI) Plc has been lifted by the Nigerian Exchange (NGX) Regulation Limited (RegCo).
The lifting of the embargo on the underwriting company was confirmed by NGX Limited in a regulatory disclosure last week.
NGX RegCo, which regulates the nation’s flagship stock exchange, prohibited the trading of IEI equities by investors in July 2023, over the company’s failure to file its financial statements.
In the rules guiding the bourse, the regulator has the authority to suspend the trading of an issuer, which fails to comply with the provisions of Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the exchange (Issuers’ Rules) (Default Filing Rules).
The rules state that if an issuer fails to file the relevant accounts by the expiration of the cure period, the NGX will “(a) send to the issuer a second filing deficiency notification within two business days after the end of the cure period; (b) suspend trading in the issuer’s securities; and (c) notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.”
On July 11, 2023, the NGX suspended IEI, which made it impossible for shareholders of the organisation to sell or buy additional shares of the firm on the exchange.
But last Tuesday, after filing its results, the embargo was removed, allowing for the buying and selling of the insurer’s stocks at the bourse, gaining 20.85 per cent in the week to close at N1.68.
“In view of the company’s submission of the outstanding financial statements, and pursuant to Rule 3.3 of the Default Filing Rules, which states that, The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided the exchange is satisfied that the accounts comply with all applicable rules of the exchange.
“The exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension, that the suspension has been lifted, trading license holders and the investing public are hereby notified that the suspension placed on trading on the shares of IEI was lifted on Tuesday, March 5, 2024,” the disclosure said.
