The Nigerian Stock Exchange (NSE) has advised investors to exchange caution on shares of 13 companies for failing without reason to submit their financial statements.
Newsmen say that the affected companies include Aso Savings and Loans, Deap Capital Management & Trust, DN Tyre & Rubber, FTN Cocoa and Goldlink Insurance.
These include International Energy Insurance, Medview Airline, Resort Savings & Loans, Staco Insurance, Unic Difference Securities, Unic Dicon Salt and Union Homes Savings and Loans, as well as Standard Alliance Insurance.
The exchange in a statement by Mr Godstime Iwenekhai, Head, Listings Compliance Department, said the defaulting companies failed to meet regulatory deadlines for the submission of their financial statements without any clarification.
The statement said defaulting companies failed to comply with the Exchange’s guidelines set out in the Deficiency Filing Notice (DFN) given to them.
“Investors are advised to deal with caution on the shares of these companies in the absence of up to date financial details on them,” said the Exchnage.
The NSE warned that it could suspend trading on the shares of the companies if they fail to comply with extant rules within the specified time.
According to the document, the deadline for submission of the unaudited financial reports of the companies became due on June 29, being the extended due date as given by the Exchange.
“By virtue of non-filing of the unaudited report by the due date, the companies violated extant rules at the NSE which provide that every company shall file its unaudited quarterly accounts not later than 30 calendar days after the relevant quarter , ” it said.
It noted that businesses were expected to report the financials within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address published in the newspaper publication.
The regulations also required that an electronic copy of the interim financial publication shall be submitted with the Exchange on the same day as the newspaper publication.
It said the NSE provided deficiency filing notice to the companies notifying them of their violations and required them to make public disclosure regarding the violation, the reasons for the violation and possible date for publication of the outstanding financial statement.
According to the Exchange, the defaulting companies failed to comply with the instructions in the DFN.
The statement said the Exchange will continue to communicate with these companies on the need to comply with post listing requirements.
It, however, warned that it could take additional action if they failed to comply and file their unaudited financial statements within 90-day cure period by Sept. 27, 2020.
The Exchange said it would send to the aforelisted companies a “Second Filing Deficiency Notification” within two business days after Sept. 27 and suspend trading in the companies’ securities.