NGX Slams N11.7m Fine On Four Companies Over Default Filings
For failing to file their financial statement after the regulatory due date, the Nigerian Exchange Limited (NGX) has fined about four companies listed on its main board.
According to the Exchange’s X-compliance report, the companies were sanctioned for 2022 financial year over their inability to meet the regulatory requirements ranging between the third quarter of 2022 and the full year of 2022.
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 said, “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 promptly to enable it efficiently perform its function of maintaining an orderly market”.
The companies sanctioned include; Ecobank Transnational Inc, Notore Chemical Industries, PZ Cussons Plc and John Holt Plc.
Further checks showed that PZ Cussons Nigeria Plc led with N4.8 million of the fines for failure to file the 2022 audited financial statement which represents 41 per cent of the total fines, while Ecobank Transnational Incorporated Plc and John Holt Plc followed with a fine of N3.2 million apiece for inability to file third quarter 2022 unaudited financial and 2022 audited financial statement respectively. Notore Chemical Industries Plc was fined N500,0000 for failure to submit the 2022 audited financial statement.
Reacting to the development, market operators agreed that the sanction for non-compliance with the rules of listing on NGX is a welcome development, as it will lead to more appropriate pricing of securities while adding that quoted entities would be compelled to give information to the market on time.
The National Coordinator, Progressive Shareholders Association, Boniface Okezie, said it is better for Nigerians to have a few companies that are ready to play by the rules than to have all the companies in the world that are not ready to satisfy post-listing requirements.
Okezie said that penalizing companies for non-compliance with the rules of listing on NGX was a welcome development, as it will lead to more appropriate securities pricing. 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.
