The Nigerian Exchange Limited (NGX) has fined 18 listed companies a sum of N34.72 million for late filing of financial statements for full year ended December 31, 2022.
The Exchange said the companies filed their audited financial statements after the regulatory due date and NGX Regulation Limited (NGX Regco) applied sanctions in accordance with the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of NGX.
Post-listing rules at the NGX required quoted companies to submit their audited results, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit an interim reports not later than 30 calendar days after the end of the relevant period.
The Exchange in its X-Compliance report disclosed that PZ Cussons Nigeria Plc was the most sanctioned company, followed by Caverton Offshore Support Group Plc.
Specifically, PZ Cussons Nigeria and Caverton Offshore Support Group were sanctioned N4.8million and N3.9million for untimely filling of 2022 financial results to the Exchange, respectively.
Others sanctioned are: Fidelity Bank Plc with N2.7million; Guaranty Trust Holding Company Plc, N1.4million; Regency Alliance Insurance Plc, N1.4million; Abbey Mortgage Bank Plc, N1.4million; Champion Breweries Plc, N1.6million; Daar Communications Plc, N1.7million; NPF Microfinance Bank Plc, N1.8million; Wema Bank Plc, N1.9million.
In addition, Access Holdings Plc, N2million; Jaiz Bank Plc, N0.6million; Juli Plc, N120,000; Industrial Medical & Gases Nigeria Plc, N1.2million; Glaxo SmithKline Consumer Nigeria Plc, N1.3million; Notore Chemical Industries Plc, N500,000; Ecobank Transnational Incorporated, N3.2million and John Holt Plc, N3.2million.
The Exchange in its X-Compliance report explained that the initiative was designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies.
The report stated: “companies that are listed on the Exchange are required to adhere to high disclosure standards which are prescribed in Appendix 111 of the Listing Rules.
“Financial information which is periodic disclosure and on-going material events disclosure should be released to The Exchange in a timely manner to enable it efficiently perform its function of maintaining orderly market”.
Capital market operators said the sanctions were warranted, expressing that, such sanctions would compel more quoted companies to disclose their information to the market on a timely basis.
The vice president, Highcap Securities, Mr. David Adnori said, the action of NGX would also boost investor confidence in the market because it is sending a clear message on the need for investors to get companies’ financial reports as at when due.
He added that investors always need to make informed decisions about which stocks to buy and that they can only be able to do that if companies release their regulatory filings on time.
The national coordinator of Progressive Shareholders Association (PSAN), Mr. Boniface Okezie said, penalising companies for non-compliance with the rules of listing on NGX was a welcome development, as it will lead to more appropriate pricing of securities.
He said, more entities would be compelled to give information to the market on a timely basis, adding that, investor confidence in the regulatory capacity of NGX and the market would be enhanced.