NSE suspends six firms over financial statements

The Nigerian Stock Exchange (NSE) has suspended trading in the shares of six companies listed on its trading platform.

As a result of this action, shareholders of the affected firms will not be able to trade the stocks of the companies at the exchange until the embargo is lifted by the NSE.

A notice to stockbrokers on Tuesday, September 1, 2020, explained that the organisations were suspended from trading their equities on the exchange because they failed to adhere to the listing rules.

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

Their suspension was in pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the exchange also known as the issuers’ rules or default filing rules.

The 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 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 24 hours of the suspension.”

NSE stated that “the shares of the six under listed companies have been suspended from trading via the facilities of the exchange, effective today, Tuesday, September 1, 2020, having failed to file their audited financial statement for the year ended December 31, 2019.

“FTN Cocoa Processors Plc, Medview Airline Plc, Niger Insurance Plc, R.T. Briscoe (Nigeria) Plc, Union Dicon Salt Plc, and Capital Oil Plc.”

The circular further said, “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.”