NSE Suspends Medview Airline, Niger Insurance, Four Others Over Failure to Submit Financial Statements

Following their inability to submit
their financial statements within the specified period, the Nigerian Stock Exchange has suspended trading in the shares of six companies.

The companies accordong to the rules of the Stock Exchange have failed to comply with extant corporate governance rules and best practices that mandate them to submit their financial statements.

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

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

Based on the listing and regulatory rules at the capital market, all quoted companies must submit their annual audited report and financial statement not later than 90 days after the end of the financial year.

More than 85 per cent of quoted companies, including all banks, insurers, major manufacturers, oil and gas companies and conglomerates use the calendar year ending December 31 as their business year.

Thus, the deadline for the submission was Monday, March 30, 2020.

However, with the disruptions caused by the COVID-19 pandemic, the NSE and Securities and Exchange Commission extended the deadline for submission of annual report and accounts by 60 days to May 29, 2020.

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

It stated, “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.”

The NSE had in July 2020, warned investors to be wary when dealing with shares of 13 companies after they failed to meet regulatory deadlines for the submission of their financial statements without any explanation.

The companies were Aso Savings and Loans Plc; Deap Capital Management & Trust Plc; DN Tyre & Rubber Plc; FTN Cocoa Processors Plc; Goldlink Insurance Plc; International Energy Insurance Plc; and Medview Airline Plc.

Others were Resort Savings & Loans Plc; Staco Insurance Plc; Standard Alliance Insurance Plc; UNIC Diversified Holdings Plc; Union Dicon Salt Plc and Union Homes Savings and Loans Plc.

“Investors are advised to trade with caution on the securities of these companies in the absence of up to date financial information on them,” the NSE stated.

The Exchange warned that it may suspend trading on the shares of the companies if they fail to comply with extant rules within the specified period.

The Head, Listings Regulation Department, Nigerian Stock Exchange (NSE), Godstime Iwenekhai stated the NSE had issued deficiency filing notice to the companies notifying them of their violations and mandating them to make public disclosure regarding the violation.

They are also to provide the reasons for the violation and possible date for publication of the outstanding financial statement.

According to the Exchange, the defaulting companies failed to comply with the directives in the deficiency filing notice.