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Late account submission: NSE fines 21 companies N28m

By on October 25, 2013

The Nigerian Stock Exchange has fined 21 listed companies a total of N28.6m for default filings made between January and this month, investigations by our correspondent have revealed.

According to the NSE, the sanctions were imposed on the companies because they filed their financial statements for 2011 and 2012 this year after the regulatory due date.

It added in the NSE’s latest X-Compliance report that the sanctions were in accordance with the provisions of its listing rules.

The report, which is a transparency initiative of the Exchange aimed at maintaining market integrity and protecting investors by providing compliance-related information on all listed companies, showed that two of the companies, International Energy Insurance Plc and Mutual Benefits Assurance Plc, were fined for filing their 2011 audited accounts after the regulatory due date.

While International Energy Insurance was fined N3.8m, Mutual Benefits had N3m deducted from its account.

Seventeen other companies were fined for defaulting in filing their 2012 audited accounts, while two others – Red Star Express Plc and Avon Crown Cap Plc – were fined for defaulting in filing their audited accounts for 2013.

Companies in the NSE 30 that were fined for default filings include Dangote Flour Mills Plc and Oando Plc. Both companies were fined N500,000 and N600,000, respectively for filing their 2012 audited accounts after the regulatory due date.

In addition, the NSE fined six companies the sum of N5.4m for unauthorised publication and non-disclosure of material information in the nine-month period covered by the report.

Of the six companies, four were handed fines for publications they made without NSE’s prior written approval in 2013, while two were fined for non-disclosure of information.

Those fined for publication without approval are Custodian and Allied Insurance Plc (N661.500, publication of notice of court-ordered meeting); Crusader Insurance Plc (N472,500, publication of notice of court-ordered meeting); Wapic Insurance Plc (N496,125, appointment of directors) and Honeywell Plc (N1.2m, unauthorised publication of Extraordinary General Meeting).

For the other two companies indicted for non-disclosure of information, the report stated that Sterling Bank Plc was fined N1.3m for non-disclosure of its bond issuance to the Exchange, while Julius Berger Plc was fined N1.4m for “non-disclosure of the substantial shareholding of Oasis Petroleum Company Limited in the 2011 annual reports and account.”

 

 

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