89% Of Companies File Their 2014 Reports – NSE

The Nigerian Stock Exchange (NSE) on Wednesday warned companies that are fond of non-filling or late filling of audited financial statements to strive to be alive to their responsibilities to avoid sanctions.                                                                                                    

The NSE confirmed that as at August  3, 2015, 89 percent of the active  listed companies have filed  their audited accounts for  the year ended December 31, 2014.

The NSE therefore reminded the defaulting companies to be conscious of their  obligations under Section 19.5  of the Amendments to the  Listing Rules).                                                                                                    During the last two years, the NSE said it granted all listed  companies a month’s grace  after their respective  regulatory filing dates due to the regulatory challenges of  adopting the International  Financial Reporting  Standards (IFRS) by the listed  companies and socio- political uncertainties that prevailed in the country in recent times.

The Exchange added that it believes the extended  filing period was therefore  adequate and Issuers should have no reason for failing to  file their audited financials  as at when due.

Head of Legal  and Regulation Division of the NSE,Tinuade Awe, 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.

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