The Nigerian Stock Exchange (NSE) has announced the suspension of trading in the shares of six listed companies.The six companies are DN Tyre & Rubber Plc, FTN Cocoa Processors Plc, International Energy Insurance Plc, Thomas Wyatt Nigeria Plc, Union Dicon Salt Plc, and Unic Diversified Holdings Plc.
Head of Listings Regulation Department of the NSE, Godstime Iwenekhai said this in a statement.He said the decision was pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing Rules”).
He explained that the affected firms failed to file details of their accounts as stipulated by market regulations.By the suspension, which took effect from yesterday, there would be no price movement on their shares because investors would no longer trade on the stock.
According to NSE, the rule provides that if an issuer fails to file the relevant accounts by the expiration of the current period, the exchange will send to the issuer a ‘Second Filing Deficiency Notification’ within two business days.
It states: “After the end of the Cure Period; suspend trading in the Issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the market within twenty-four (24) hours of the suspension.
“In accordance with the rules set forth above, the suspension of the above listed companies will only be lifted upon the submission of the relevant accounts and provided, the NSE is satisfied that the accounts comply with all applicable rules of the exchange.” The NSE, had in July, 2018 suspended trading in the shares of eight firms over similar matter.The suspension was however lifted, following the submission of their full-year audited reports for the 2017 business year.