Modupe Gbadeyanka
By Modupe Gbadeyanka
The Nigerian Stock Exchange (NSE) has announced resumption in the exchange of shares of Royal Exchange Plc on its trading platform.
This followed the lifting of the suspension earlier placed on the company as a result of its failure to file the necessary financial statements for the perusal of investing public.
A circular signed by Mr Godstime Iwenekhai, the Head of Listings Regulation Department at the NSE stated that the suspension placed on trading on the shares of Royal Exchange Plc was lifted on Thursday, August 29, 2019.
Royal Exchange was one of the 11 companies suspended via a circular dated July 2, 2019, with Reference Number: NSE/RD/LRD/MB34/19/07/02.
In the July 2019 circular, the NSE had said Royal Exchange and others suspended was for non-compliance with Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the exchange also known as Issuers’ Rules.
The rule stipulates 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.”
According to Mr Iwenekhai, Royal Exchange has filed its audited financial statements for the year ended December 31, 2018 with the exchange.
The NSE said in view of the company’s submission of its audited financial statements, and pursuant to Rule 3.3 of the Default Filing Rules, the suspension has been removed.
Business Post reports that the Rule 3.3 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.”
