THE Nigerian Stock Exchange (NSE) has delisted six companies for failure to comply with listing regulations, just as it fined 19 listed companies N53 million over default fillings.
The company delisted from the Nigerian Bourse were West Africa Pllc, Premier Breweries and Lennards (NIG) Plc.
Others are P.S. Mandrides Nigeria Company Plc, Navitus Energy Plc and Nigeria Ropes Plc.
The Exchange in a statement said, “Please note that the under listed stocks have been delisted from the official list of the Nigeria Stock Exchange effective today 1st December, 2016.
“Sequel to the approval of the Quotation Committee of the National council of the Stock Exchange, the delisting is due mainly to their inability to comply to the listing rules and regulations guiding quoted companies.”
The Exchange under the administration of Mr Oscar Onyema, Chief Executive Officer of the NSE has forced the delisting of over 10 companies from its daily official list in five years, following their non-compliance with provisions of the listings rules.
The NSE in 2014 had forcefully delisted Pinnacle Point Group Plc, Afroil Plc, Starcomms Plc and Big Treat Plc over their failure in taking the appropriate steps at regularising their listing status.
According to NSE, the exchange had published a notice of its intention to delist 24 listed companies from its daily official list, arising from their non-compliance with provisions of the listings rules of The Exchange and pursuant to clause 15 of the general undertaking on Monday, June 23, 2014.
“However, four affected companies have failed to take any appropriate steps to regularize their listing status and the Exchange has proceeded to delist them, effective from November 24, 2014,” the NSE said.
Meanwhile NSE has imposed a fine of N53 million on 19 listed companies for inability to meet the regulatory requirements ranging between full year ended December 31, 2014 and first quarter ended March 31, 2016.
The companies include Great Nigeria Insurance, Daar Communication, DN Tyre & Rubber, Equity Assurance, Flour Mills, Tripple Gee, African Alliance Insurance, DN Meyers, Standard Alliance Insurance, Cornerstone Insurance, Fortis Microfinance Bank, Sovereign Trust Assurance, among others.
Further investigation revealed that Great Nigeria Insurance, Daar Communication, DN Tyre & Rubber Plc and African Alliance Insurance Plc got about N43.6 million of the fines, which accounted for 83.04 per cent.
The Exchange, in its X-Compliance report, explained that initiative was designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies.
The report stated, “Companies that are listed on the Exchange are required to adhere to high disclosure standards, which are prescribed in Appendix 111 of the Listing Rules.
“Financial information, which is periodic disclosure and on-going material events disclosure, should be released to the Exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market.”
The NSE, in an effort to achieve a world class capital market, has reiterated its commitment to maintain zero tolerance posture on dealing member firms and quoted companies on violations of rules and regulations.
This is on the back of the Exchange’s determination to shift gears to drive innovations centred on increasing global visibility for the Nigerian capital market in the current year.
The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr Oscar Onyema, maintained recently that the local bourse would sustain a zero-tolerance stance on dealing member firms and listed companies’ violations to help boost the confidence in the market.
Stockbrokers said this action of the NSE will boost investors’ confidence in the market because it is sending a signal that the NSE’s management understands the need for investors to get companies’ financial reports as at when due.
They noted that investors need to take informed decisions before choosing which stock to buy and this could only be achieved if there is adherence to good corporate governance by the quoted companies.
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