The Nigerian Stock Exchange (NSE) has suspended trading on the shares of Unity Bank and five other quoted companies for failure to file their accounts as required by market regulations.
The five companies are, Fortis Microfinance Bank Plc, Thomas Wyatt Nigeria Plc, Multi-Trex Integrated Foods Plc, Golden Guinea Breweries Plc and Deap Capital Management & Trust Plc.
The suspension, which takes effect from yesterday, November 1, 2018, implies that there would be no price movement on the shares because the company’s investors would no longer trade on their stocks.
A statement issued by NSE’s Head of Listings Regulation Department, Godstime Iwenekhai, noted that the decision was pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing Rules”).
The NSE explained that the rule provides that if an issuer fails to file its accounts at the expiration of the trading year, the exchange will send to the issuer a ‘Second Filing Deficiency Notification’ in two business days.
“After the end of the Cure Period, it suspends trading in the issuer’s securities and notifies the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension,” it said.
The exchange, therefore, restated that effective Thursday, November I, 2018, trading in shares of the six companies remain suspended.
Also, the exchange added that the suspension of the firms would only be lifted upon the submission of relevant accounts, providing that the exchange is satisfied that the accounts comply with applicable rules of the exchange.
The NSE had on October 8, 2018, suspended trading on the shares of six firms over similar issues.
The suspension of the companies’ shares was, however, lifted afterwards, following the submission of their full-year audited reports for the 2017 business year.