The NSE Fines 42 Companies Over Failure To File Financial Reports

The Nigerian Stock Exchange has fined some 42 companies for failing to adhere to the listing standards of the market.

The companies including oil and gas company Conoil Plc, R.T. Briscoe Plc, Royal Exchange Plc, Deap, and 39 others, were fined over N1 billion for account filing default, according to the standards of the NSE.

Some of these companies, like NGC, DN Tyre, Union Homes Savings & Loans, and Aso Savings & Loans have consistently not submitted their audited financial reports to the stock exchange for as far back as 2014. 

Others like Omatek, Evans, Unic Diversified, Juli, Anino, Multi-Trex have failed to file their audited results since 2015, while companies like Staco Insurance; Goldlink; FTN Cocoa; Capital Oil; Guinea Insurance: Resort Savings; Standard Alliance Insurance; International Energy Insurance; fall in the category of those that have not submitted their audited financial reports since 2017 and 2018.

In the NSE's X-Compliance report, released a few days ago, the NSE disclosed the amounts the companies were fined for.

Conoil was fined the sum of N800,000, FTN Cocoa was fined the sum of N50.3 million, while Royal Insurance and Omatek Ventures were fined N537.2 million and N22.3 million respectively. Niger Insurance was fined the sum of N84.2 million, while Union Nikon and Royal Insurance were fined 

 In the report, the NSE fined N27.5 million and N22.3 million respectively.

Others fined include R.T. Briscoe which was fined the sum of N53.4 million for failing to submit its audited financial report since 2018, and Deap Capital, which was fined N5.5 million for not submitting its 2019 report to the NSE.

Financial reports are necessary for transparency and openness on the financial state of a company. All companies listed on the Nigerian Stock Exchange are expected to comply with the rules, and this involves releasing financial information from time to time for investors to be informed, and for the NSE to protect the integrity of the market as well as ensure the running of an orderly market.