NGX Regulation, the regulatory division of the NGX Group, has suspended trading in the shares of eight companies for failing to file their 2023 financial accounts.
In a market bulletin issued on Monday, Godstime Iwenekhai, Head of the Issuer Regulation Department, announced that the suspension is effective immediately.
The companies affected by the suspension include Unity Bank, C&I Leasing Plc, Guinea Insurance, Lasaco Assurance, Mutual Benefits Assurance, NPF Microfinance Bank, Regency Alliance Insurance, and Secure Electronic Technology Plc.
Iwenekhai stated, “Trading in the shares of the eight companies listed below has been suspended from the facilities of Nigerian Exchange Limited (NGX or The Exchange) effective today, Monday, 8 July 2024, for not filing their Audited Financial Statements for the year ended 31 December 2023.”
As per the post-listing requirements, companies on the Exchange are required to submit their accounts and other documents within a specified timeframe.
NGX RegCo acted in accordance with Rule 3.1 regarding the Filing of Accounts and Treatment of Default Filing (Default Filing Rules), which states, “If an issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will: a) Send the issuer a Second Filing Deficiency Notification within two business days after the end of the Cure Period; b) Suspend trading in the issuer’s securities; and c) Notify the Securities and Exchange Commission and the market within 24 hours of the suspension.”
According to this rule, the suspension on trading in the shares of the affected companies will be lifted once they comply with the regulations.
Insurance companies have faced delays in filing their 2023 annual reports due to the adoption of IFRS 17 standards.
IFRS 17 requires companies to recognize profits as they deliver insurance services (rather than when premiums are received) and to provide information about the expected future profits from insurance contracts.
