15 February 2013

Nigeria Stock Exchange Fines Dangote, AIT, 29 Others N56.3mn for Breaching Rule

John Holt PLC, Dangote Four Mills, and 29 other companies in the capital market on Thursday came under the heavy hammer of the Nigerian Stock Exchange, NSE, as they were handed various fines totaling N56.3 million for failing to submit their 2011 and 2012 financial statements on schedule.

An X-Compliance report released by the NSE showed that John Holt was given double sanctions that would see the company paying N1.7 million and N3.4 million for failing to turn its financial results for 2011 and 2012 respectively; the management of Ikeja Hotels and Daar Communications PLC, owners of African Independent Television, AIT, and Ray Power radio networks, are to pay N3.4 million fine each for failing to comply with the NSE listing requirement.

The NSE said other companies also affected by the sanctions include C&I Leasing (N1.5 million), Costain West Africa (N2.85 million), Dangote Flour Mills (N0.4 million), Oando PLC (N0.5 million), SCOA (N0.8 million), Union Bank of Nigeria PLC (0.9 million) and Wema Bank PLC (N2.7 million), among others.

The NSE slammer also affected 14 insurance companies, with Linkage Assurance receiving the highest fine of N3.3 million, while Equity Assurance, Standard Alliance, Mutual Benefits Assurance, Great Nigeria Insurance and African Alliance Insurance, among others, are to pay N3 million each.

According to the NSE, refusal to file their financial returns for the period was a violation of the provisions of Section 14 of Appendix 111 of the Listing Rules of the Exchange.

In recent times, the Stock Exchange has tried to be proactive in the enforcement of its listing rules by ensuring that it demands prompt submission of market information by quoted companies to restore investors' confidence in the capital market.

One of the major listing requirements for quoted companies as stipulated by the NSE guidelines is that their quarterly and full year reports must be submitted not later than 90 days after the close of a quarter or a financial year.


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