NGX Suspends LASACO, Unity Bank, 6 Listed Companies From Trading, Gives Reason
- The NGX has suspended eight listed companies for failing to file their 2023 financial reports as expected
- Amongst the suspended firms are Guinea Insurance, NPF Microfinance Bank, Regency Alliance Insurance, and Unity Bank
- The suspension takes effect from July 8, 2024, and the affected companies will not be able to trade shares until otherwise stated
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The Nigerian Exchange Limited (NGX) has suspended trading for eight companies because they failed to comply with a regulation mandating listed firms to submit audited annual reports by a specified deadline.
According to the document, the suspension will persist until these companies provide their pending 2023 audited financial statements to the exchange.
Source: UGC
The companies facing sanctions include Mutual Benefits Assurance, Lasaco Assurance, Unity Bank, C & I Leasing, Secure Electronic Technology, Guinea Insurance, NPF Microfinance Bank, and Regency Alliance Insurance.
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Recall that in June 2024, the NGX fined nine quoted firms N76.8 million for failing to file their audited financial statements by the due date.
Unity Bank, supported by the Asset Management Corporation of Nigeria (AMCON), is the sole listed bank that has not yet released its 2023 earnings report.
AMCON, established to purchase non-performing loans from banks and subsequently recover them, is Unity Bank's principal shareholder, owning over one-third of its issued shares.
Suspension in accordance with NGX rule
Premium Times reported that the document was signed by Godstime Iwenekhai, who heads the NGX's issuer regulation department.
Iwenekhai informed the investing public that the suspension is in accordance with Rule 3.1, which pertains to the filing of accounts and the handling of default filings.
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He noted that the suspension was effective Monday, July 8, 2024.
The statement partly read:
“If an Issuer fails to file the relevant accounts by the expiration of the Cure Period1, 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.”
A cure period typically lasts 90 calendar days, starting from the beginning of the year and extending to the end of the first quarter. This period includes weekdays, weekends, and public holidays.
The document also stated that the exchange is obligated to inform the capital market regulator, the Securities and Exchange Commission (SEC), and the market within twenty-four (24) hours of the suspension.
Recall again that in 2023, the NGX applied the same sanction on Ardova Plc, Presco Plc and five other listed companies over the same offence.
Reacting to the NGX's action, Tunde Akintoye, a Lagos-based stockbroker told Legit.ng that the suspension is a necessary step to uphold market integrity.
He said:
"This action highlights the importance of transparency and accountability in the financial sector.
"By enforcing strict adherence to reporting deadlines, the NSE ensures that investors have access to timely and accurate information, which is crucial for making informed decisions.
"While the suspension may temporarily disrupt trading activities, it ultimately serves to reinforce the standards expected of publicly listed companies and maintain confidence in the Nigerian financial markets."
NGX unveils electronic public offering platform
In related news, Legit.ng reported that the NGX and the SEC unveiled a digital platform for purchasing shares.
NGX chief executive officer Temi Popoola said the platform is embedded with capabilities to facilitate transactions.
The NGX also recently launched a shortcode or USSD to allow Nigerians to own quoted company shares.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
