The Nigerian Stock Exchange (NSE), has suspended Conoil Plc, alongside 10 other firms from trading their shares on the Exchange.
In a statement signed and released by NSE’s Head, Listings Regulation Department, Godstime Iwenekhai, the Exchange named the firms to be FTN Cocoa Processors Plc, Goldlink Insurance Plc, Guinea Insurance Plc, Lasaco Assurance Plc, Niger Insurance Plc, R.T. Briscoe (Nigeria) Plc, Resort Savings & Loans Plc, Royal Exchange Plc, Standard Alliance Insurance Plc, and Universal Insurance Plc.
The suspension takes effect from today Tuesday, July 2, 2019.
NSE, however, notified its dealing members that the move to suspend the companies from trading their shares is in pursuant of Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing Rules”).
What the rule provides: The quoted rule provides that, “If an issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will: (a) Send to the Issuer a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period; (b) Suspend trading in the Issuer’s securities; and (c) Notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension”.
Any hope for the hammered firms? The suspension of the companies can be lifted if the firms submit the relevant accounts, and provided that NSE is satisfied that the
accounts comply with all applicable rules of The Exchange.
The consequence of the NSE move: The shares have been placed on full suspension, meaning that they will neither trade nor will there be any change in price movement. The company will also be fined for the late submission of the results.
Any worry? The firms will not be the only ones affected by this development, as investors who own these shares will also not be able to trade them, till the suspension is lifted.