Dipo Olowookere
By Dipo Olowookere
The suspension placed on the trading in the shares of Guinea Insurance Plc and Nigeria Insurance Plc by the Nigerian Stock Exchange (NSE) has been lifted.
The embargo was removed on Wednesday, September 25, 2019 after the insurers complied with the listing rules, which caused the initial action of the stock market regulator.
A circular released yesterday by the Head of Listings Regulation Department at the NSE, Mr Godstime Iwenekhai, confirmed this development after both firms released their financial statements.
Business Post reports that Guinea Insurance Plc and Nigeria Insurance Plc were among the 11 companies suspended by the NSE on July 2, 2019 for failing to submit their books.
Few days ago, they both filed their audited financial statements for the year ended December 31, 2018 with the exchange, which necessitated the removal of the embargo on trading in their equities by investors.
According to the circular on Wednesday, “In view of the companies’ submission of their audited financial statements, dealing members are hereby notified that the suspension placed on trading on the shares of Guinea Insurance Plc and Niger Insurance Plc was lifted today, Wednesday, September 25, 2019.”
This was done pursuant to Rule 3.3 of the default filing rules, which provides 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.
Business Post reports that Guinea Insurance and Niger Insurance were initially punished for specifically violating Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the exchange (Issuers’ Rules) which provides that if an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange 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.
