NSE Delists 9 Firms From Stock Market

November 12, 2016
NSE Delists 9 Firms From Stock Market

NSE Stock Market

By Modupe Gbadeyanka

Nine companies on the Nigerian Stock Exchange (NSE) have been delisted from the capital market. The NSE revealed that this occurred between January and October 2016.

It was explained that the affected firms were mostly punished for failing to comply with market regulations.

According to the News Agency of Nigeria (NAN), the companies affected are IPWA Plc, G. Cappa, West African Glass Industries, Investment & Allied Insurance and Alumaco.

Others are Jos International Breweries, Adswitch, Rokanna and Vono Products Nigeria Plc.

Eight of the companies were delisted for regulatory issues while Vono Products was delisted because of its merger with Vitafoam.

Delisting firms from the NSE involves removal of listed securities of a company from a stock exchange where it is traded on a permanent basis.

Head of Banking and Finance Department, Nasarawa State University, Keffi, Mr Uche Uwaleke, disclosed that breach of post listing requirements, failure to pay the annual listing fee or a company in liquidation were the major reasons for delisting of companies.

Mr Uwaleke said that non-submission of audited and unaudited reports as required by the exchange increased the chances of delisting.

“Other issues bordering on corporate governance may attract sanctions such as trading suspension which is lifted as soon as the matter is resolved.

“To avoid being delisted, the management of a quoted company should endeavour to comply with NSE post listing requirements,” Mr Uwaleke said.

He stated that delisted companies should be encouraged to list on NASD over the counter platform to provide a secondary market window for the shareholders of such companies.

Mr Uwaleke called on the Securities and Exchange Commission to ensure that shareholders of liquidated companies benefit from its National Investor Protection Fund (NIPF) as a way of compensation.

President of Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, said shareholders suffered most whenever a delist from the exchange occurred.

Mr Okezie said that market regulators going forward should ensure proper scrutiny of companies before listing and their ability to adhere to post listing requirement.

He said that shareholders must not bear the pain because regulatory agencies were the ones that approved the accounts that attracted investors to invest in companies.

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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