The Nigerian Stock Exchange (NSE) has released amendments to its dealing member rules.
A dealing member is a member company that has been granted license by the Exchange as a dealer in securities hereinafter referred to as member.
Rule 7.4 pertains to the submission of financial and non-financial reports to the Exchange, while Rule 7.5 is concerned with the extension of time for submission of audited financial statements, and quarterly returns.
The NSE stated that every dealing member shall submit to the Exchange its audited financial statements, within 90 calendar days of the end of the fiscal year, and its quarterly returns within 30 calendar days of the end of the quarter and any other periodic report within the period stipulated by the Exchange.
“All financial statements shall be prepared in accordance with the requirements of the International Financial Reporting Standards (IFRS) applicable to the period covered in such financial statement.
“If a dealing member fails to comply with this provision, it shall be liable to the following penalties which are subject to review by Council and any change thereto shall be made public by way of a circular and failure of a dealing member to submit quarterly returns on the date due for submission shall attract a penalty of N5, 000 per day of default for a maximum of four weeks, and thereafter suspended from trading with effect from the first trading day after the due date.
“Where a Dealing Member is suspended from trading such suspension shall be lifted upon submission of the quarterly returns, or audited financial statements or other periodic reports,” the rule stated.
On Rule 7.5, which seek for extension of time for submission of audited financial statements, and quarterly returns stated that where appropriate, a dealing member may apply for an extension of time for the submission of its quarterly returns, or audited financial statements, saying that such application for extension shall be made no later than two weeks before same is due and such dealing member shall be expected to give reasons for requesting the extension.
The Exchange noted that the decision to grant a dealing member’s request for an extension of time shall be entirely at the discretion of the NSE and such extension shall in no event be longer than a period of four weeks from the due date for submission for quarterly returns, and eight weeks for audited financial statements.