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NSE to delist moribund companies, awaits SEC’s approval
As part of the decision to straighten its operations, the Nigerian Stock Exchange (NSE) is set to further prune down on the number of companies who have defaulted in their obligation to the Exchange even as it awaits the Securities and Exchange Commi-ssion (SEC) approval to delist moribund companies from its Daily Official List.
Chief Executive Officer of the NSE, Mr Oscar Onyema, made this known at the just concluded expo organised by the Africa Caribbean Business Expo in London United Kingdom (UK).
According to him, “Right now we have sent a list to the SEC and once we get the approval, we will make it happen,” he said.
He explained that the delisting will be in couple of months as soon as SEC gives its approval.
On the issue of moribund companies, the CEO of the stock exchange said the NSE has so far adopted a proactive approach by calling on companies to understand the challenges which they are facing, making them to go contrary to post-listing requirements.
Onyema said the management of Nigeria’s exchange has adopted a proactive approach while calling the companies, that really have major issues and believe there is no way they can come back to be delisted as soon as possible.
“So very soon, you will see a number of companies that will be delisted. The idea is to give companies all the support to comply with rules and to also allow the investors know the companies that are struggling by putting out those symbols next to their names. But at some point, if a company is not going to be able to turnaround or a company is just going to be there, then we have to get them delisted,” the NSE CEO said.
The NSE had in April 2012 unveiled a report, known as X-Compliance Report, as part of its ongoing regulatory programme to enhance transparency and disclosure.
The X-Compliance Report also notifies the public when a company is embarking on capital reconstruction, delisting (whether voluntary or regulatory) or restructuring.
According to the NSE, it believes that the timely disclosure of financial information and on-going event disclosure is critical to stakeholders in the capital market, as well as investors.
It will be recalled that the NSE de-listed 64 companies in 2009 only.
The council of the NSE said it approved nine which were dormant companies, following the expiration of time given the companies to regularise their status with the Exchange recently.
The companies include, Ferdinard Oil Mill Plc, Footwear Accessories Manufacturing & Distribution Plc, BCN Plc, Chrislieb Plc, Epic Dynamics Plc, Liz Olofin & Company Plc, Oluwa Glass Company Plc, Aba Textile Mill Plc, and Asaba Textile Mill Plc.Share