The Nigerian Stock Exchange (NSE) has placed the shares of RT Briscoe Plc and seven insurance companies on full suspension for failing to file relevant financial results and accounts as expected.
The seven insurance companies are African Alliance Insurance, Cornerstone Insurance, Royal Exchange, STACO Insurance, Standard Alliance Insurance, Universal Insurance Company, Veritas Kapital Assurance.
Full suspension means there will be no trading in the companies’ shares, and their share prices will be frozen.
In a press statement to the dealing members, the NSE stated that “pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the Exchange which provides that if an issuer fails to file the relevant accounts by the expiration of the cure period, the Exchange will send to the issuer a second filing deficiency notification within two business days after the end of the cure period.”
It also noted that NSE will suspend trading in the issuer’s securities and notify the Securities and Exchange Commission (SEC) and the Market within 24 hours of the suspension.
NSE noted that “in accordance with the rules set forth above, the suspension of the affected listed companies will only be lifted upon the submission of the relevant accounts and provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange.”
Market analysts noted that some of the suspended firms are perennial offenders, citing example of African Alliance Insurance of been suspended several times in the last few years.
“An X compliance report released in April this year, revealed the company was fined N46.1 million in 2017. The company in July 2013 was among several firms fined by the NSE for late submission of their audited results,” they said.
They also noted that the non-release of their results are a sign some of the companies are struggling, saying that recent results by R.T Briscoe for the nine months ended September 2017 show the firm made a loss after tax of N1.7 billion.