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Tuesday, April 23, 2019 01:37 PM / NSE
According to the NSE X-Compliance Report dated 18-04-2019, three (3) quoted companies have been fined by The Exchange for disclosure violations.
The companies namely ACCESS, DIAMONDBNK and FIRSTALUM were fined N4.41m, N3.23m and N476,280 respectively. This amount to a fine of N8.12m so far in 2019 as against a fine 0f N4.06m in 2018.
The nature of the breach for ACCESS and DIAMONDBNK were on non-disclosure of resolutions passed at its Board Meeting while FIRSTALUM was fined for non-dispatch of its notice of AGM and Annual Reports to shareholders twenty-one (21) days before the date of the meeting.
It
pertinent to state that both DIAMONDBNK
and FIRSTALUM
were also part of the three (3) listed companies fined in 2018 for disclosure
violations.
Source: NSE X-Compliance Report
Schedule
5 of the NSE X-Compliance Report states that ‘every listed company is required
to provide The Exchange with timely information to enable it efficiently
perform its function of maintaining an orderly market while listed companies
are required to obtain prior written approval from The Exchange before
publications that affect shareholders’ interest are made in the media or via
the Issuers’ Portal. In addition, companies are also required to disclose
material information to The Exchange and publish the information in their
Annual Reports.’
Accordingly,
companies listed in Schedule 5 breached certain provisions of the Listings
Rules and were sanctioned.
Free Float Deficiencies
Schedule
7 of the NSE X-Compliance Report states that ‘Companies listed on The Exchange
are required to maintain a minimum free float for the set standards under which
they are listed in order to ensure that there is an orderly and liquid market
for their securities. The free float requirement for companies on the ASEM
Board is a minimum of 15% of issued and fully paid up shares while that of the
Main Board is a minimum of 20% of the issued and fully paid up shares.
Companies listed on the Premium Board are also required to have a free float of
a minimum of 20% of issued and fully paid up shares or the value of its free
float is equal to or above N40 billion on the date The Exchange receives the
Issuer’s application to list.’
According
to the latest X-Compliance Report, the following companies listed below have
free float deficiencies.
Source: NSE X-Compliance Report
Download Here – Latest X-Compliance Report
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