By our Correspondent
The Nigerian Stock Exchange (NSE) has finally delisted eight companies including Alumaco Plc, IPWA and Adswitch Plc from its Daily Official List for violating listing rules.
Other delisted include G. Cappa Plc; West African Glass Plc; Investment & Allied Insurance Plc; Jos International Breweries Plc and Rokanna Plc.
The Exchange noted that, “Pursuant to Clause 15 of the General Undertaking, Appendix III of the Rule Book of The Exchange, 2015, Part II, Issuers’ Rules the following eight companies have been delisted from the Daily Official List of The Exchange effective May 18, 2016”
The report by NSE added: “The delisting of the afore-listed companies was approved by the Quotations Committee of the National Council of The Nigerian Stock Exchange (QCN).”
According to Business247 investigation, a total number of 25 companies in six years (2010 – 2016) have been delisted from the NSE using regulatory action.
The Exchange has also approved the delisting process of Costain (W.A.) Plc, Deap Capital Management Plc, Evans Medical Plc, International Energy Insurance Plc, Lennards (Nigeria) Plc and P.S. Mandrides & Company Plc from its Daily Official List.
Others to be delisted include Premier Breweries Plc; Navitus Energy Plc; Nigerian Ropes Plc; MTI Plc and Mtech Plc.
Meanwhile, shareholders of the companies marked for delisting have kicked against the move, expressing that non-submission of financial accounts by quoted companies could be a ploy by those that want to exit the market to force the NSE to delist them on its own, thereby escaping the rigours of delisting process, which they claim is cumbersome.
While some of the companies are being delisted for failing to file their quarterly and annual financial reports and accounts with the NSE, some others face the same fate for failing to regularise their listing status with the Exchange after being given time to do so.
The Chief Executive Officer, NSE, Mr. Oscar Onyema, disclosed to that delisting of companies that have failed to disclose their accounts it’s for shareholders interest.
He said, “I want to note that a number of shareholders have said that we are not protecting investors by the delisting. In reality, we are protecting investors by making it very clear that you cannot be a listed company and stay for two, three years without providing your financial statement. On what basis are you trading?”
“So, that is why we are taking this stand; it is not a new thing; we have been delisting companies. In fact, the life of any Exchange involves listing and delisting as a normal thing.
Even the human beings you see come alive and die. So, it is just part of the realities of the capital market,” Onyema added.
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