NSE Warns Investors Against 13 Defaulting Companies

NSE Portal

NSE warns investors about defaulting companies! The Nigerian Stock Exchange (NSE) has advised investors not to throw caution to the wind when trading securities with 13 companies. This is coming after the Companies failed to provide up-to-date financial information on their dealings.

The companies affected are Medview Airline Plc; Resort Savings & Loans Plc; Staco Insurance Plc; Standard Alliance Insurance Plc; Aso Savings and Loans Plc; Union Dicon Salt Plc, Union Homes 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 UNIC Diversified Holdings Plc. 

The mentioned Companies violated the Rule 1.1.2 for filing of accounts and treatment of default filing rule book of the exchange. The NSE said.

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Furthermore, the NSE explained that the companies’ Unaudited Financial Statement (UFS) became due on 29 June 2020, being the extended due date as granted by the exchange.

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“By virtue of non-filing of the UFS by the due date, the companies have violated Rule 1.1.2, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange, which provides that every issuer shall file its unaudited quarterly accounts not later than 30 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication. An electronic copy of the publication shall be filed with the exchange on the same day as the newspaper publication.”

The Nigerian Stock Exchange (NSE) also added that the defaulting companies failed to comply with the exchange’s directives set forth in the DFN and in light of the companies’ continued breach of Rule 2.2.1 of the Rules. In line with the requirements of Rule 2.2.2, the exchange advised the investing public that a DFN has been issued against the aforelisted companies. Therefore, NSE warns investors and advice investors to trade with caution on the securities of these companies in the absence of up to date financial information on them.

Pursuant to the provisions of Rule 2.2.1 of the Rules, the exchange had issued a deficiency filing notice (DFN) to the aforementioned companies. The purpose of the DFN was to notify the companies of their infraction and to grant them three days to provide the following information to the public through the medium of a press release.

However, the NSE further advised that the exchange will continue to engage with these companies and may take additional steps should they fail to comply, and file their UFS within the 90 days cure period stipulated by Rule 3.1.

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