NGX suspends 9 listed firms over default in audited financial statements

BY ONOME AMUGE

The Nigerian Exchange Limited (NGX) has suspended trading in the shares of nine publicly quoted companies, which includes buying or selling stocks via its facilities, effective from July 1, 2022, for failing to file their Audited Financial Statements for the year ended 31 December 2021.

The companies, according to a circular issued from the NGX, include African Alliance Insurance Plc, Niger Insurance Plc, Royal Exchange Plc, Ekocorp Plc, C&I Leasing Plc, Mutual Benefits Assurance Plc, Coronation Insurance Plc, Premier Paints Plc and Ardova Plc.

The NGX cited Rule 3.1 of the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the Exchange, thus: “If an Issuer fails to file the relevant accounts by the expiration of the Cure Period1, The Exchange will: (a) Send to the Issuer a ‘Second Filing Deficiency Notification’ within two (2) 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 twenty- four (24) hours of the suspension.”

The NGX also 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 the Stock Exchange”.