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    Tuesday, July 9, 2024

    NGX Temporarily Suspended Trading in Shares of Eight Companies

    The NGX Regulation, the regulatory arm of the NGX Group, has suspended trading in the shares of eight companies due to their failure to submit their relevant accounts for the year 2023.

    On Monday, the Head of the Issuer Regulation Department, Godstime Iwenekhai, announced in a market bulletin that the suspension was effective immediately.

    As per the market bulletin, the following companies have been impacted: Unity Bank, C&I Leasing Plc, Guinea Insurance, Lasaco Assurance, Mutual Benefits Assurance, NPF Microfinance Bank, Regency Alliance Insurance, and Secure Electronic Technology Plc.

    “The trading of shares in the following eight companies has been suspended by the Nigerian Exchange Limited (NGX or The Exchange) effective today, Monday, 8 July 2024. This action was taken due to their failure to file their Audited Financial Statements for the year ended 31 December 2023,” Iwenekhai said.

    In accordance with post-listing obligations, organizations on the Exchange are required to provide their financial statements and other pertinent documentation within predetermined timeframes.

    NGX RegCo said that it acted by Rule 3.1 about the Filing of Accounts and Treatment of Default Filing, (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.”

    In accordance with the established guidelines, the suspension of trading in the shares of the affected companies will be lifted upon their compliance with the stipulated rules.

    Insurance companies have encountered filing delays for their annual report in 2023 due to the implementation of IFRS 17 standards.

    Under IFRS 17, a company must recognize profits as it delivers insurance services, rather than when it receives premiums. Additionally, the company must provide information about insurance contract profits it expects to recognize in the future.

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