NSE suspends six companies for noncompliance to corporate governance rule  

The Nigerian Stock Exchange (NSE) has suspended trading in six companies for not complying with corporate governance rules and best practices for listed companies that mandate them to submit their financial statements within a specified period.

The suspended companies are FTN Cocoa Processors Plc; Medview Airline Plc; Niger Insurance Plc; R.T. Briscoe (Nigeria) Plc; Union Dicon Salt Plc and Capital Oil Plc.

The suspension of trading on the shares of the companies from Tuesday September 1, 2020 over their failure to “file their audited financial statement for the year ended December 31, 2019”.

Listing and regulatory rules of The Exchange make it mandatory for all quoted companies to submit their annual audited report and financial statement not later than 90 days after the end of the financial year.

Most of the companies on the Official List of the NSE have December 31 as their business year end. Thus, the deadline for the submission was Monday, March 30, 2020.

But the management of the Exchange and that of the nation’s apex capital market regulator, the Securities and Exchange Commission (SEC) were magnanimous by extending the deadline for submission of annual report and accounts by 60 days, till May 29 considering the disruptions caused by the COVID-19 pandemic, the world over.

The NSE stated that the companies were suspended after the expiration of the “grace” period and many notifications demanding the submission of the financial statements.

“In accordance with the rules set forth above, the suspension of trading in the shares of the above listed companies will only be lifted upon the submission of the relevant accounts and provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange,” NSE stated.