April 14, 2024

  • Bitcoin(BTC)$24,383.00-1.66%
  • Ethereum(ETH)$1,657.83-2.53%
  • Tether(USDT)$1.000.18%
  • BNB(BNB)$310.23-1.26%
  • USD Coin(USDC)$1.000.10%
  • XRP(XRP)$0.39-0.81%
  • Binance USD(BUSD)$1.000.05%
  • Cardano(ADA)$0.39-2.73%
  • Dogecoin(DOGE)$0.09-2.67%
  • Polygon(MATIC)$1.38-6.66%
parkisgold-zz

NGX Sanctions Financial Report Defaulters, Experts Laud Action

0 78
market - NGX

CEM REPORT, MARKET | Capital market professionals have lauded the Nigerian Exchange Limited’s (NGX) decision to punish companies that failed to submit their financial accounts for the full year ending December 31, 2022, by the deadline.

According to experts, these sanctions will encourage more listed entities to timely disclose their financial information to the market.

David Adnori, vice president of Highcap Securities, asserts that NGX’s action will increase market investor trust.

parkisgold-zz

He stated that timely regulatory filings from corporations are necessary for investors to make well-informed decisions about which stocks to purchase.

Boniface Okezie, national coordinator of the Progressive Shareholders Association (PSAN), on his part, said penalizing corporations for breaking the listing requirements for the NGX is a positive move since it would result in more accurate pricing of stocks.

He continued by saying that the action will inspire other businesses to promptly alert the market.

For submitting their financial accounts for the full year that concluded on December 31, 2022, late, 18 listed businesses on the NGX were recently slammed a fine amounting to N34.72 million.

The NGX Regulation Limited (NGX Regco), according to the Exchange, administered sanctions in line with the Issuers’ Rules for Filing of Accounts and Treatment of Default Filing.

PZ Cussons Nigeria Plc and Caverton Offshore Support Group Plc were the two companies with the highest sanctions, according to the Exchange’s X-Compliance report.

For failing to immediately submit financial statements for 2022 to the Exchange, PZ Cussons Nigeria and Caverton Offshore Support Group, respectively, were fined N4.8 million and N3.9 million.

Fidelity Bank Plc received N2.7 million, Guaranty Trust Holding Company Plc received N1.4 million, Regency Alliance Insurance Plc received N1.4 million, Abbey Mortgage Bank Plc received N1.4 million, Champion Breweries Plc received N1.6 million, Daar Communications Plc received N1.7 million, NPF Microfinance Bank Plc received N1.8 million, and Wema Bank Plc received N1.9 million in sanctions.

In addition, Access Holdings Plc, N2million; Jaiz Bank Plc, N0.6million; Juli Plc, N120,000; Industrial Medical & Gases Nigeria Plc, N1.2million; Glaxo SmithKline Consumer Nigeria Plc, N1.3million; Notore Chemical Industries Plc, N500,000; Ecobank Transnational Incorporated, N3.2million and John Holt Plc, N3.2million.

The Exchange X-Compliance report claims that the endeavour to penalize defaulting businesses is part of an effort to uphold market integrity and safeguard investors by disclosing compliance-related data on all listed companies.

According to the report, firms with listings on the Exchange are obligated to abide by strict disclosure requirements outlined in Appendix 111 of the Listing Rules.

[READ ALSO] Exchange Rate Today: Dollar gains Marginally

“Financial information which is periodic disclosure and on-going material events disclosure should be released to The Exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market”.

Quoted businesses were expected to submit their audited results in accordance with post-listing regulations to the NGX no later than 90 calendar days, or three months, following the end of the quarter. In accordance with the regulations, listed businesses must additionally file interim reports no later than 30 calendar days following the conclusion of the applicable period.

Share this

Leave a Comment

parkisgold-zz
glo advert
WP Twitter Auto Publish Powered By : XYZScripts.com