Dipo Olowookere
By Dipo Olowookere
Nine publicly quoted organisations trading their shares on the Nigerian Exchange (NGX) Limited have been suspended.
A circular issued by the bourse explained that the affected firms were slammed for failing to file their Audited Financial Statements (AFS) for the year ended December 31, 2021.
With this development, shareholders of the nine companies and prospective investors would not be able to buy or sell the stocks of the organisation on the exchange with effect from Friday, July 1, 2022, until the embargo is lifted.
The suspended organisations, according to the notice are Ardova, Niger Insurance, C&I Leasing, African Alliance Insurance, Coronation Insurance, Royal Exchange, Ekocorp, Premier Paints and Mutual Benefits Assurance.
In the disclosure, the NGX stated that its action was based on Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, (Default Filing Rules).
The law empowers the bourse to suspend trading in defaulter’s stocks if it “fails to file the relevant accounts by the expiration of the cure period.
This must have been after the stock exchange sends to “the issuer a second filing deficiency notification within two business days after the end of the cure period.”
Also, within 24 hours after placing a suspension on the trading in the shares of any defaulting public firm, the NGX must “notify the Securities and Exchange Commission (SEC) and the market.”
In the circular, the bourse declared that “trading in the shares of nine companies (above) been suspended from the facilities of the NGX effective today, Friday, July 1, 2022, having failed to file their Audited Financial Statements for the year ended December 31, 2021.”
However, it emphasised that “the suspension of trading in the shares of the above-mentioned companies will only be lifted upon the submission of the relevant accounts, provided NGX Regulation (NGX RegCo) Limited is satisfied that the accounts comply with all applicable rules of NGX.”
