NSE suspends shares of 17 companies

The Nigerian Stock Exchange (NSE)

The Nigerian Stock Exchange, NSE, has placed the shares of 17 companies on suspension for failing to file their various financial statements as at when due. Most of the companies are in the insurance sector, and are also penny stocks.

The companies include African Alliance Plc, Equity Assurance Plc, Guinea Insurance Plc, Sovereign Trust Insurance, Goldlink Insurance, Great Nigeria Insurance, and Universal Insurance Company Plc.

Others are Fortis Microfinance Bank Plc, Premier Paints Plc, Resort Savings & Loans Plc, African Paints Plc, Aso Savings and Loans Plc, Ekocorp Plc, Evans Medicals Plc, Omatek Ventures Plc, Union Dicon Salt Plc and Union Homes Savings & Loans Plc.

The suspension, according to the NSE, took effect from July 5, 2017 and would be lifted upon the submission of the relevant accounts. Companies listed on the NSE are expected to file their yearly and quarterly financial reports 30 days after the end of the quarter in accordance with the NSE’s post listing rules requirement.

Usually, companies that fall short of this rule are tagged MRF (Missed Regulatory Filing), while most often financial sanction is meted out to the delinquent filers. For failing to file its first, second and third quarter 2016, Guinea Insurance Plc was fined ₦6.9 million, while it was fined ₦3.8 million for failing to file its audited 2015 financial report on time.

Great Nigeria Insurance was fined ₦5.3 million for defaulting in filling its 2015 financial report on time, while African Alliance Insurance was fined ₦12 million between December 2014 and third quarter 2015 for the default.

Equity Assurance got ₦1.1 million fines for default filing of its December 2015 and Q1, 2016 result. Fortis Microfinance Bank, on other hand, got ₦700,000 fines for failing to file its 2015 financial report as at when due.

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