NGX Fines N779m On 16 Firms For Market Offences

The Nigerian Exchange Limited has sanctioned 16 companies for multiple market infractions in three years, according to findings by the correspondent.

Specifically, the NGX imposed the sum of N779.5m fine on LASACO Assurance Plc, Presco Plc, Ardova Plc, C&I Leasing Plc, and 12 other listed companies on the bourse between 2020 and 2022.

Fourteen of the companies were sanctioned N170.6m in 2022, while the NGX imposed N586m monetary sanctions on seven of them in 2021. In 2020, three of the firms were sanctioned N22.9m.

The 14 companies fined in 2022 were ETI, FBN Holdings Plc, Union Bank of Nigeria Plc, Honeywell Flour Mills Plc, Unity Bank Plc, Presco Plc, Ardova Plc, C&I Leasing Plc, Coronation Insurance Plc, Royal Exchange Plc, PZ Cussons Nigeria Plc, LASACO Assurance Plc, Mutual Benefits Assurance Plc and Omatek Ventures Plc.

In 2022, the Exchange imposed N14.9m fine on Coronation Insurance, followed by N11.6m and N9.7m fines imposed on C & I Leasing and Ardova, respectively.

Presco was fined N5.1m by the management of the Exchange, while Honeywell Flour Mills was sanctioned N1.2m for not remitting third quarter 2021 result and accounts on the due date.

Financial institutions sanctioned included ETI which was fined N3.2m in 2022; FBN Holdings was fined N8.1m; Union Bank of Nigeria, N1.2m; Fidelity Bank Plc was fined N1.6m in 2021 while Unity Bank Plc was sanctioned N4.2m.

Also, between 2020 and 2022, the Exchange sanctioned LASACO Assurance N29.2 for failing in some post-listing requirements.

Findings showed investors had shunned trading in the stocks of some of the affected companies.

The Exchange in a statement stated that “The board of NGX RegCo approved the reclassification of the Omatek Ventures from delisting watch list to restructuring status giving the Company time to source investors and reclassify its operations.”