Nigerian Stock Exchange penalises errant firms

The Nigerian Stock Exchange has fined some errant firms listed on the stock exchange for failing to comply with the Listing Rules of the Nigerian Stock Exchange. According to the information contained in its recent X-Compliance Report, the affected firms were penalised for infractions of several post-listing requirements, such as default in filing audited annual financial statements, default in filing quarterly accounts, unauthorised publication of company information, and non-disclosure of material company information. Some of the notable companies penalised include Conoil Plc, Costain (W.A) Plc, Dangote Flour Mills Plc, DAAR Communication Plc, First Bank of Nigeria Plc, Ikeja Hotel Plc, John Holt Plc, Julius Berger Nigeria Plc, Oando Plc and Union Bank Plc.

In addition, five companies were identified to have free float deficiencies and have been given different dates to comply with the minimum free float requirements. The companies are however required to also provide quarterly disclosure reports to the Nigerian Stock Exchange detailing their level of implementation of the compliance plans. The companies affected are Dangote Cement Plc, NPF Microfinance Bank Plc, Studio Press Plc, Tourist Company of Nigeria Plc and Union Bank of Nigeria Plc. Companies listed on the Nigerian Stock Exchange are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market for their securities. The free float requirement for companies on the Main Board is 20 percent while that for companies listed in the ASEM is 15 percent.

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