Wednesday, October 18, 2017 11.48AM / The Analyst
Further to the market
development news reported: Trading
on the Shares of Oando Plc Suspended; Reasons Unknown ; the regulator
and bourse have both issued a release just now on the decision taken to suspend
trading on Oando Plc shares.
Circular to the
General Public on Oando Plc – SEC Release
The Securities & Exchange Commission received two petitions from
Alhaji Dahiru Barau Mangal and Ansbury Incorporated. The Commission carried out
a comprehensive review of the petitions and made the following findings amongst
· Breach of the provisions of the Investments & Securities Act
· Breach of the SEC Code of Corporate Governance for Public Companies
· Suspected insider Dealing
· Related party transactions not conducted at arm’s length
· Discrepancies in the shareholding structure of Oando Plc. Etc.
The Commission’s primary role as apex regulator of the Nigerian Capital
Market is to regulate the market and protect the investing public. The
Commission notes that the above findings are weighty and therefore needs to be
further investigated. After due consideration, the Commission believes
that it is necessary to conduct a forensic audit into the affairs of Oando Plc.
This is pursuant to the statutory duties of the Commission as provided in
section 13(k), (n), (r) and (aa) of the ISA 2017.
To ensure the independence and transparency of the exercise, the
Forensic Audit shall be conducted by a consortium of experts made up of
auditors, lawyers, stockbrokers and Registrars.
To further ensure that the interest of all shareholders of Oando Plc are
preserved during the course of the exercise, the Commission directed the
Nigerian Stock Exchange to place the shares of Oando Plc on technical
However in view of the fact that it is not technologically feasible for
the Exchange to effect a technical suspension except after 48 hours, the
Commission directed as follows;
for forty-eight (48) hours from today, 18 October 2017 to 20 October 2017, The
Nigerian Stock Exchange should implement a full suspension in the trading of
the shares of Oando Plc; and
from 20 October 2017 and until further directive, The Exchange should implement
a technical suspension in the shares of Oando Plc.
NSE Suspends Trading in the Shares of Oando Plc on SEC Directive – NSE
Securities and Exchange Commission has directed The Nigerian Stock Exchange to
suspend trading in the shares of Oando Plc as follows:
Effective for forty-eight (48) hours from today, 18 October 2017 to 20 October
2017, The Exchange should implement a full suspension in the trading of the
shares of Oando Plc; and
Effective from 20 October 2017 and until further directive, The Exchange should
implement a technical suspension in the shares of Oando Plc. A full suspension
is the halt of trading activities in a listed security for a period.
technical suspension is the interruption of price movement in a listed security
for a period so that any dealings in the securities which occur during the
period of the suspension will not result in any change in price, which change
may have occurred had the suspension not been implemented.
the 48-hour period commencing today, there will be no trading in the shares of
Oando Plc. Thereafter, effective 20 October 2017, investors will be able to
trade in Oando Plc’s shares but such trading will not result in any movement in
the price of the shares.
above is for your information and records update please.