Following its determination to raise the stake of corporate governance in the stock market, The Nigerian Stock Exchange (NSE) has said with effect from Wednesday, this week, it will suspend Dealing Member Firms that are yet to render their Quarterly Returns for the Period Ended March 31 2012.
LEADERSHIP investigation revealed that the decision of the NSE to sanction stockbrokerage firms was contained in a circular to the dealing members at the weekend.
According to the Circular, “This is to remind all Dealing Member Firms that their Quarterly Returns for the Period Ended 31st March 2012 is due on or before 15th May 2012” the Notice said.
The NSE said Dealing Member Firms that fail to meet the May 15 2012 deadline will immediately be suspended from trading and would attract a penalty of N5, 000 per day of default.
“Please be informed that based on (Policy No.01 NSE) made pursuant to Article 15(h) of the Rules and Regulations Governing Dealing Member of The Exchange which came into effect on November 1 2011; that failure of a Dealing Member to submit Quarterly Returns on the due date shall attract a penalty of Five thousand Naira only (N5, 000) per day of default and the Dealing member shall be suspended from trading with effect from the first trading day after the due date” the NSE said.
However, the Exchange advised the Dealing Members yet to comply to do so on or before the May 15 2012 due date to avoid regulatory action.
According to the NSE, the suspension from trading if applied can only be reversed on submission of the Quarterly Returns and payment of the N5, 000 daily penalties.
“Note that the suspension mentioned above if applied can only be vacated on the submission of the Quarterly Returns and payment of penalty for late submission” the Notice said.
Recall that the NSE had reiterated in several fora that the investing public need timely financial information from listed companies in order to facilitate stock transactions that are based on market fundamentals.