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.