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- The NGX has suspended seven listed companies for not filing their account report on time
- Amongst the suspended companies is Ardova Plc, a top player in the energy sector in Nigeria.
- Affected companies will no longer be able to trade shares or move share prices until otherwise stated
A total of seven companies have been sanctioned by the Nigerian Exchange Group (NGX) for failing to comply with the guideline of The Exchange.
The companies; Ardova Plc, Presco, C and I Leasing, Royal Exchange, International Energy Insurance, Pharma Deko and Afromedia, will be halted from shares transaction and movement of share price.
It would be recalled that a similar incident occurred in 2022 where the NGX had to suspend 8 listed companies from trading their shares on the market for failure to submit their financials.
Photo credit – Meta Wikimedia, Issuu
Source: UGC
According to the NGX, four banks and 12 companies were fined a total sum of N779 million over various market violations between 2020 and 2022.
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Details of the suspension
According to a circular from the NGX, the companies are suspended for failure to file their audited results for end of year, December 31, 2022.
This is against the principle of timely disclosure in the stock market as operators and investors in the market rely on such information.
The suspension, effective from July 11, comes under rule 3.1 of the NGX, will remain until proven compliance and submission of result, The Nation reports.
The due date for submission for the 2022 results was long due by March 30, 2023. The stock market extant rule requires companies on the exchange to submit their full year audited result at the most, 90 days after the year ends while quarterly result are due 30 days at most after the end of the quarter.
Extension of suspension deadline
In cases where issue militating against compliance or specific waiver for a company based on a proven challenge, general extension of the deadline could be considered.
Under the regime of penalty for non-compliance, suspension is considered the second highest form of sanction.
However, in situation where there is repeated failure to comply with the deadline even after certain grace period and processes, the NGX can explore the option of compulsory delisting or totally removing the company from the market.
VFD Group Plc officially announces intention to list on the NGX
In related news, Legit.ng reported that VFD Group stated its intention to list on the NGX.
It is believed that the strategic move will allow the company access increase visibility, strengthen its position and gain access to the equities market.
The company has a diverse portfolio of investment in various sector which includes banking, technology and others.
Source: Legit.ng
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