NSE Fines 19 Companies N53m Over Non-compliance
The Nigerian Stock Exchange (NSE) has imposed a fine of N53 million on 19 listed companies for inability to meet the regulatory requirements ranging between full year ended December 31, 2014 and first quarter ended March 31, 2016.
The companies include Great Nigeria Insurance, Daar Communication, DN Tyre & Rubber, Equity Assurance, Flour Mills, Tripple Gee, African Alliance Insurance, DN Meyers, Standard Alliance Insurance, Cornerstone Insurance, Fortis Microfinance Bank, Sovereign Trust Assurance, among others.
Further investigation revealed that Great Nigeria Insurance, Daar Communication, DN Tyre & Rubber Plc and African Alliance Insurance Plc got about N43.6 million of the fines, which accounted for 83.04 per cent.
The Exchange, in its X-Compliance report, explained that initiative was designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies.
The report stated, “Companies that are listed on the Exchange are required to adhere to high disclosure standards, which are prescribed in Appendix 111 of the Listing Rules.
“Financial information, which is periodic disclosure and on-going material events disclosure, should be released to the Exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market.”
The NSE, in an effort to achieve a world class capital market, has reiterated its commitment to maintain zero tolerance posture on dealing member firms and quoted companies on violations of rules and regulations.
This is on the back of the Exchange’s determination to shift gears to drive innovations centered on increasing global visibility for the Nigerian capital market in the current year.
The chief executive officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said recently that the local bourse will sustain a zero-tolerance stance on dealing member firms and listed companies’ violations to help boost the confidence in the market.
Stockbrokers said this action of the NSE will boost investors’ confidence in the market because it is sending a signal that the NSE’s management understands the need for investors to get companies’ financial reports as at when due.
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