Victor Ezeja
NGX Group has suspended trading in the shares of Unity Bank, Guinea Insurance, and six other companies for non-compliance with filing requirements for 2023.
Other firms affected by the suspension include C&I Leasing Plc, Lasaco Assurance, Mutual Benefits Assurance, NPF Microfinance Bank, Regency Alliance Insurance, and Secure Electronic Technology Plc.
Join our WhatsApp ChannelThe action was carried out by the regulatory arm of the NGX Group, NGX Regulation.
This was disclosed in a market bulletin on Monday. According to the publication, Head of the Issuer Regulation Department, Godstime Iwenekhai, said the suspension was with immediate effect.
“Trading in the shares of the eight companies below have 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,” Iwenekhai said.
Companies on the Exchange are required to submit their accounts and other papers within a specific time limit in accordance with post-listing criteria.
According to NGX RegCo, it followed Rule 3.1 about Account Filing and Default Filing Treatment (Default Filling Rules) which said: “If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will a) Send to 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 the regulation, as soon as the impacted companies follow the guidelines, the trading ban on their shares would be revoked.
The implementation of IFRS 17 standards had caused insurance companies to face delays in submitting their annual report for 2023.
Companies must report on the profits they intend to recognize from insurance contracts in the future and recognize profits as they offer insurance services—rather than when they receive premium payments—in accordance with IFRS 17.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
