The Nigerian Stock Exchange (NSE) suspended trading in the shares of eight (8) companies effective July 5, 2018. Most affected are insurance companies. They companies are African Alliance Insurance Plc, Cornerstone Insurance Plc, R. T. Briscoe Plc, Royal Exchange Plc, STACO Insurance Plc, Standard Alliance Insurance Plc, Universal Insurance Company Plc, and Veritas Kapital Assurance Plc.
In a notification to dealing members at the Nigerian bourse on the suspension of trading in the shares of the eight listed companies, the NSE referred to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (Default Filing Rules).
The Rule provides that; “If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will: (a) Send to the Issuer a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period; (b) Suspend trading in the Issuer’s securities; and (c) Notify the Securities and Exchange Commission (SEC) and the market within twenty- four (24) hours of the suspension”.
“The suspension of the above listed companies will only be lifted upon the submission of the relevant accounts and provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange,” according to the NSE.
