The Nigerian Stock Exchange (NSE) has cautioned investors on the need to be careful while trading shares belonging to 13 companies.
In a statement signed by Godstime Iwenekhai, head of NSE listings regulation department, the companies failed to comply with the directive to issue a press release as set forth in the Deficiency Filing Notice (DFN).
The defaulting companies are Aso Savings and Loans Plc; Deap Capital Management & Trust Plc; DN Tyre & Rubber Plc; FTN Cocoa Processors Plc; Goldlink Insurance Plc; International Energy Insurance Plc; Medview Airline Plc; Resort Savings & Loans Plc; Staco Insurance Plc; Standard Alliance Insurance Plc; UNIC Diversified Holdings Plc; Union Dicon Salt Plc; and Union Homes Savings and Loans Plc.
The NSE said the companies were meant to have issued unaudited financial statements (UFS) in a press release on June 29, 2020, the extended due date.
By not filing the financial statements, the stock exchange said the companies violated rule 1.1.2 of the rules for filing accounts and treatment of default filing of the exchange’s rulebook.
The statement also disclosed that in pursuant to the provision of the rule 2.2.1, it has issued a DFN to the companies.
NSE said the purpose of the DFN was to notify the 13 companies of their “infraction and to grant them three days to provide that the relevant UFS had not been filed by the due date; a detailed explanation of the reasons for the delay; and the anticipated filing date, or state that the company is unable to indicate an anticipated filing date and reasons for such inability to indicate the anticipated filing date”.
“Investors are advised to trade with caution on the securities of these companies in the absence of up to date financial information on them,” the NSE said.
Speaking further, NSE said it would continue to engage with the companies and may send a second filing deficiency notification within two business days after September 27, 2020; and suspend trading in the company’s securities, if these companies fail to comply and file their UFS within 90 days cure period stipulated by rule 3.1 of the rulebook.