TheNigerianVoice Online Radio Center

NSE fines 31 companies N56.3m for late filings

By The Citizen

The Nigerian Stock Exchange has imposed a fine of N56.3m on 31 listed companies for their failure to file their financial statements within the stipulated period.

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

This information, obtained by our correspondent from the 'X Complaince' report posted on the NSE's website this week, showed that Daar Communications Plc, Ikeja Hotels Plc and John Holt Plc had the highest fines of N3.4m each.

The companies failed to submit their audited accounts for December 2011 as at the due date.

Linkage Assurance Plc was fined N3.3m for its failure to file its December 2011 audited accounts within the stipulated time frame, while Equity Assurance Plc, Standard Assurance Plc, Mutual Benefits Plc, Great Nigeria Insurance Plc and African Alliance Insurance Plc were fined N3m each for the same offence.

Other companies that faced the NSE sanction included Unic Insurance Plc, IPWA Plc, Wema Bank Plc, Guinea Insurance Plc and Costain (West Africa) Plc.

Others are ConoilPlc, OandoPlc, Dangote Flour Mills Plc, C & I Leasing Plc, Cornerstone Insurance Plc, John Holt Plc, Premier Paints Plc, SCOA Nigeria Plc and Union Bank of Nigeria Plc.

The Exchange noted that it applied the sanctions in accordance with the provisions of Section 14 of Appendix 111 of the listing rules.

The Chief Executive Officer of the NSE, Mr. Oscar Onyema, had announced a few months ago that the Exchange had zero tolerance for errant companies and market operators, adding that companies and operators found wanting would be duly sanctioned.

The NSE had recently rolled out sanctions aimed at checking the activities of operators in the capital market.

According to the Exchange, the sanctions and rules will guard against various infractions by dealing members of the Exchange.

The Exchange said that infractions such as the unauthorised sale of client's securities by dealing members, verification of shares in connivance with another, misappropriation of funds, were covered by the new rules.

Others included third party transaction, improper maintenance of client's account, failure to appoint a compliance officer and non-rendition of quarterly returns.

The statement added that the NSE has also reviewed the rules and regulations governing the conduct of dealing members

The NSE said that in the case of unauthorised sale of securities, the dealing member involved will be made to return the benefits gained from the sale, buy back the securities, pay a fine of N100,000 and N5,000 every day from the day of the unauthorized sale until the day the shares are bought back.