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The Nigerian Stock Exchange (“The Exchange”) today confirmed that as at August 3, 2015, 89% of the active listed companies have filed their audited accounts for the year ended 31 December 2014. The Exchange therefore wishes to again remind the affected companies of their obligations under the Listings Rules (Section 19.5 of the Amendments to the Listing Rules).
During the last two years, NSE has granted all listed companies a month’s grace after their respective regulatory filing dates noting the regulatory challenges of adopting the International Financial Reporting Standards by the listed companies and socio-political uncertainties that prevailed in the country in recent times. The Exchange believes that the extended filing period was therefore adequate and Issuers should have no reason for failing to file their audited financials as at when due.
Tinuade Awe, Head of Legal and Regulation Division of The Nigerian Stock Exchange (NSE) stated that “late filing has the potential to adversely affect the market and their shareholders. It creates grounds for avoidable doubts regarding companies’ performances. The Exchange is monitoring the compliance status of these companies very closely and is engaging the affected companies accordingly. We encourage investors to always check the X-Compliance Report and Released Financials on our website for full details of the compliance status of listed companies before making investment decisions”.
For failure to file audited reports timely the NSE sanctions range from penalties to regulatory delisting of the securities from the Daily Official List of The Exchange. These penalties accrue on a weekly basis and further depletes the bottom-line of the companies’ earnings. These penalties are also expected to be disclosed in the annual reports of the companies.
To view the list of companies yet to file their 2014 audited financial reports, please go to http://www.nse.com.ng/Issuers-section/corporate-disclosures/x-compliance-report.
