NSE Fines 4 Firms N127.2m Over Financial Statements
The Nigerian Stock Exchange has fined four companies a total of N127.2m for failure to adhere to best corporate governance practices and refusal to submit their accounts and operational reports as and when due.
It was reported on November 7, 2018 that the NSE had lifted the suspension it had earlier placed on trading in the shares of Ekocorp Plc, Academy Press Plc, Premier Paints Plc and Austin Laz & Company Plc.
The latest X-Compliance data from the NSE revealed that the four companies were suspended at different times in 2017 and failed to right their wrongs, which led to the huge amount of accumulated fines.
According to the data obtained from the Exchange, Ekocorp owes N75.6m; Academy Press, N35m; Premier Paints, N11.2m, and Austin Laz, N5.4m.
Premier Paints and Ekocorp were suspended on July 5, 2017; Austin Laz was suspended on August 2, 2017, and Academy Press on October 4, 2017.
According to the rules for filing of accounts and treatment of default filing and the rulebook of the exchange (issuers’ rules), if an issuer fails to file the relevant accounts by the expiration of the cure period, the Exchange will send to the issuer a ‘second filing deficiency notification’ within two business days after the end of the cure period.
The rules added that trading in the issuer’s securities would be suspended and the Securities and Exchange Commission and the market would be notified within 24 hours of the suspension.