Modupe Gbadeyanka
By Modupe Gbadeyanka
The exchange of Deap Capital Management and Trust Plc shares on the floor of the Nigerian Stock Exchange (NSE) has recommenced following the lifting of the suspension earlier placed on the company.
Investors in the company were allowed to start trading the firm’s stocks again on Thursday, September 5, 2019, a regulatory document disclosed.
The big stick of the NSE landed on Deap Capital on November 1, 2018 after the organization failed to comply with one of the listing rules.
The company was one of the six firms suspended by the stock market regulator for failing to submit their financial statements as required of them.
In the circular dated November 1, 2018 with reference number: NSE/RD/LRD/MB01/18/11/01, the NSE had said Deap Capital and five others did not adhere to the Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (Default Filing 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.’
In the notice issued last week, the NSE said Deap Capital has now filed its outstanding financial statements with the exchange and in view of the company’s submission of its outstanding financial statements, “the suspension placed on trading on the shares of Deap Capital Management and Trust Plc was lifted on, Thursday, September 5, 2019.”
The NSE said the removal of the embargo was in line with 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.
